Summary Government received offerings far less than the anticipated $ 800 million target: Sources
ISLAMABAD (Dunya News) – Ministry of Finance suggests that the government has deferred the sale of 10% shares of Oil and Gas Development Company Limited (OGDCL) on request of federal cabinet regarding OGDCL’s privatization.
The government took the decision in the wake of county’s improving economic condition and prices in the international market whereas a source in Ministry of Finance revealed that the offerings received by the government stood short of the $ 800 million target due to more than 25% decline in oil prices in international market.
Privatization Commission had set Rs216/share floor price for OGDCL; the government however received offerings far less than the anticipated target.
OGDCL was established in 1961 in order to meet country’s increasing demand of oil and gas that fetched resources of oil and gas thereby saving country’s foreign exchange.
Company’s income in the previous year was Rs 257 billion whereas the profit with a 36% raise was Rs 124 billion.
On the announcement of OGDCL’s privatization, employees and opposition parties had staged a protest against the decision.
Earlier, Chairman Privatization Commission Muhammad Zubair has said that OGDCL is not being privatized. He said that government has nothing to hide about OGDCL. “All the matters are transparent, nothing is hidden”, he said. Muhammad Zubair said that OGDCL is not being privatized; only 10 percent shares of the company are being sold. He said that 35 percent of the shares have already been sold.
Clarifying government’s position on OGDCL’s privatization, Muhammad Zubair Umar said that the cabinet has allowed selling shares worth Rs. 322 million. Earlier, shares of United Bank Limited (UBL) and Pakistan Petroleum Limited (PPL) had also been sold, told Zubair. OGDCL shares are also being sold on the lines of PPL transaction. “Selling of shares will not have any effect on the positions of management and employees”, said Zubair Umar.
Chairman Privatization Commission said that selling of OGDCL shares is a normal transaction and has no international agenda whatsoever. “There are no plans to sell rest of the shares during current tenure”, said Zubair. He said that Pakistan has collaboration with International Monetary Fund (IMF) and IMF was given privatization schedule by Pakistan. IMF never gave any dictation to Pakistan, he said. Muhammad Zubair said that the government has paid 3.1 billion US dollars to IMF since taking over the country while IMF has provided 2.2 billion USD so far.
