CCOP approves reserve price for privatisation of Services Int’l Hotel

ISLAMABAD   –  The Cabinet Committee on Privatization (CCOP) on Thursday approved the reserve price for the privatisation of the Services International Hotel, Lahore. 

Federal Minister for Finance and Revenue, Dr Abdul Hafeez Shaikh chaired the meeting of the CCOP. Privatisation Division presented a summary regarding approval of a reserve price for the privatisation of the Services International Hotel, Lahore. The Additional Secretary briefed the Committee that all codal formalities were met during the valuation process. After due deliberation, the Committee approved the reserve price for the sale of Services International Hotel, as recommended by the Privatisation Commission. 

The Privatisation Commission (PC) had approved a minimum sale price of Rs2.25 billion for Services International Hotel. Six potential investors have pre-qualified for the bidding stage and due diligence has already been completed. The government wants to sell the hotel this month. The Privatisation Commission has decided to complete the privatisation process of three PSEs including divestment of up to 20% shares of Pakistan Reinsurance Co. Ltd, SME Bank Limited and Services International Hotel, Lahore by June 30 this year. The government had budgeted to generate Rs100 billion from the privatization of the public sector entities during ongoing financial year. 

Meanwhile, the Privatization Division presented various proposals regarding Award of Management Contracts for smooth running of DISCOs in compliance with the earlier directive of the CCOP meeting held on January 04, 2021. The Management Contracts would improve the service delivery and thus, serve the larger interest of electricity consumers in Pakistan. The Privatization Division also requested for a permission to hire a Transaction Adviser for completing the aforesaid tasks. 

After detailed discussion, the Committee directed to speed up the process of completion of prior actions pertaining to award of Management Contracts for DISCOs and present a roadmap with firmed-up proposals within a week, after seeking requisite approval from the Privatization Commission Board. The Committee also allowed hiring of a Transaction Adviser as permissible under the rules. 

In his remarks, the finance minister stressed the need to carry forward the process of privatization on fast track basis. The time is of essence in undertaking a well-structured privatisation activity to bring in competitive efficiency, improve service delivery and enhance customer satisfaction. Privatization will diversify sources of income for the government, generate employment opportunities and contribute towards overall economic growth and development, he added. 

The Privatization Division also submitted a compliance report on the implementation status of public sector enterprises (PSE) in real estate, industries, banking and finance, energy and other sectors which are on active privatisation list. 

The Committee reiterated the firm commitment of the government in spearheading the privatisation process with transparency and fairness in consultation with stakeholders. The finance minister urged to observe the timelines and carry forward the whole process expeditiously, he concluded. 

Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Planning and Development Asad Umar, Adviser to the Prime Minister on Commerce Abdul Razak Dawood, Adviser to the Prime Minister on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue, Dr. Waqar Masood and SAPM on Power Tabish Gauhar participated in the meeting.

Article source: https://nation.com.pk/19-Mar-2021/ccop-approves-reserve-price-for-privatisation-of-services-int-l-hotel