Islamabad: Prime Minister Muhammad Nawaz Sharif has said that the government upholds a very transparent policy of privatization which is aimed at converting organizations into profit making entities and reducing burden on government exchequer.
Prime Minister also appreciated the efforts of Finance Minister Senator Ishaq Dar for disinvestment of 19.8 % of GOP shares of United Bank of Pakistan.
Prime Minister was apprised by Finance Minister that there was unprecedented interest from both the domestic as well as foreign buyers and the UBL deal was oversubscribed by almost 2 times.
More than 40 of the World’s leading equity funds including Templeton, Wellington, Everest, Lazard, Morgan Stanley, Blackrock, etc participated in the UBL share transaction. The total demand received from the domestic investors was Rs 12.3 billion, which is one of the highest in terms of domestic demand in Pakistan’s Capital Market history.
Mr. Ishaq Dar further apprised the Prime Minister that the transaction will raise equivalent of USD 387 million out of which 310 million will be foreign exchange component while the remaining amount is the rupee component. 90% of the proceeds will be used for debt retirement and 10% for poverty reduction.
While elaborating other issues taken up in today’s Cabinet Committee on Privatization meeting, Finance Minister apprised that 31 PSEs were approved for fast-track privatization by the previous government. The present government is following the same list. UBL, PPL, OGDCL are the first to be privatized. The UBL deal is the first success story which will be followed by PPL and OGDCL soon.