20000115

HBL to be

privatised in one

go: PC chief

ISLAMABAD: The government has decided, to privatise Habib Bank Limited (HBL) in one go, Privatisation Commission Chairman Altaf Saleem, said here on Friday.

Earlier, there was a proposal to privatise HBL by offering its different networks Ñ Middle East branches, foreign branches and local branches Ñ separately.

"We have finally decided to offer the HBL as a whole," the chairman said while talking to APP here.

HBL, one of the largest commercial bank of the country, was established in 1941 and operated in the private sector until it was nationalised in 1974.

Responding to a question, the chairman said the privatisation plan was almost in the final stages and would be ready by the end of the current month to be presented to the government for approval.

"Once the plan is approved by the government, we will start the process," he said, adding, "We are taking things simultaneously but targeting the oil and gas sector first."

The emphasis on oil and gas sector marks a major shift in the priorities, as the previous privatisation policy focused to off-load the financial sector first.

Saleem said that the oil and gas had a huge potential and privatisation in this sector would not only increase the operational efficiency of the public units but would also contribute towards new injection of investment.

The government, a couple of days back, promulgated an ordinance to set up the Gas Regulatory Authority (GRA), which was pre-requisite for the privatisation of oil and gas sector. The establishment of GRA will now help to expedite the process.

The government is likely to begin the privatisation by off-loading its minority shares in nine functional oil and gas fields.

To a question, the chairman said it was difficult to give a time-frame for the privatisation as it depends on the individual transaction.

However, he said in this respect we were pursuing a three-pronged strategy. The first phase would be of eight months, in which less time-consuming transactions would be carried out. The second phase would be up to 18 months and third one, beyond 18 months, having a list of time-consuming deals.

"It doesn't mean that we will delay the work on time-consuming transaction," the chairman said, while adding that the work on major transactions would be taken up simultaneously.

Responding to another question, he said the government also have a plan to divest its minority shares in the public sector units through stock exchanges.

When asked as to what percentage of government's shares will be offered through stock market, he said "That will depend upon the appetite of the marekt."

He said the work on the privatisation of PTCL was almost completed, adding that its marketing would be launched once its financial adviser gave a go ahead signal.

He, however, did not agree that the Karachi Electric Supply Corporation (KESC) was also ready for the privatisation.

"The impression that all work on KESC is completed is not true," he said adding, "lot of work has been done but lot more is needed to be done."ÑAPP