Summary A tender has been issued for appointment of financial advisor
ISLAMABAD (Dunya News) – The government is gearing up to divest shares in SME bank due to its feet deep in debts.
Sources privy to the privatization commission, a tender has been issued for appointment of financial advisor. The applications for the interested persons will be accepted until December 18.
The advisor will provide assistance in privatization of SME bank after appointment.
The bank having treasures worth Rs 2-4 billion provides loans for small enterprises. At least 13 branches of the bank are functional across the country.
Experts said that divesting of government’s shares in the bank would help expand its network. Moreover, provision of easy loans to small business by the bank would boost the economy. Privatization will also help curb unemployment.
The government has also taken step to privatize Pakistan Steel Mills (PSM). The ruling party decided to privatize the severe crisis-hit company following the International Monetary Fund’s (IMF) reforms package.
A Chinese company has shown interest in taking the wheel at the PSM. A delegation of China’s Metallurgical Group had visited the PSM site in the matter. The members of foreign delegation also held a meeting with Minister for Industries and Production, Ghulam Murtaza Khan.
The group seemed determined to increase its production at least to five million tons.
The incumbent government had transferred at least Rs 18.5 billion in April 2014 to the PSM. The amount does not include the funds which were moved to pay off employees.
It should also be mentioned here that after the 18th Amendment, the federal government needs to take into account Sindh government and Council of Common Interest’s (CCI) stance. The government has made a formal offer to the provincial government for takeover. The progress had come in after the provincial government showed interest.
Minister for Privatization, Muhammad Zubair earlier had stated that the process will be made completely transparent and fair. On October 14, the minister held press conference in the federal capital. He criticised few segments for resorting to delivering rhetorics only. He urged the criticizing elements to come up with workable proposals.
Zubair further had said that the process would take at least three to four years as the matters engages several departments to settle legal and financial issues.
