CCoP shelves shares divestment plan of Mari Petroleum

News Report

The cabinet committee on Privatization (CCoP) on Friday decided to shelve a plan of divesting government shares in Mari Petroleum Company Limited.

The cabinet body has now dropped it from the list of privatization. Sources said that the petroleum division had opposed the plan of divesting shares of Mari Petroleum.

The cabinet body discussed a proposal of divestment of the Government of Pakistan’s shares in Mari Petroleum Company Limited during a meeting. It discussed in detail and decided to omit Mari Petroleum Company Limited from the list of Privatization.

Federal Minister for Finance and Revenue Mr. Shaukat Tarin chaired a meeting of the Cabinet Committee on Privatization (CCOP). The meeting was attended by Federal Minister for Privatization Muhammad Mian Soomro, Minister for Energy Mr. Hammad Azhar, Secretary Finance Division, Secretary Privatization Commission, Secretary Petroleum Division, and other relevant officers attended the meeting.

The meeting discussed the proposal for divestment of the Government of Pakistan’s shares in Mari Petroleum Company Limited. After a comprehensive deliberation, the committee decided that Mari Petroleum Company Limited may be omitted from the list of Privatization.

The CCoP discussed the proposal submitted by the Privatization Division for debt recapitalization and refinancing of GoP excess equity and PDFL loan through commercial borrowing of National Power Park Management Company Limited (NPPMCL).

The Committee approved the proposals that NPPMCL shall initiate debt recapitalization and refinancing process as per Companies Act, 2017, and all GOP stakeholders to jointly support the NPPMCL to implement and execute the process of debt recapitalization and refinancing from local banks. The meeting also directed revisiting the interest rate of K +1.80 % through competitive bidding.

The Cabinet Committee on Privatization also discussed the summary for the privatization of Guddu Power Plant & Nandipur Power Plant and directed the Ministry of Energy for obtaining the decision of CCoE for the privatization of the above two power plants.

Privatization Divisions and Ministry of Energy were further directed to prepare and share the roadmap for the valuation of the assets of these power plants and modus operandi for transfer of assets.

The CCoP discussed the summary for the privatization of SME Bank Limited and the delisting of SME Bank Limited from the Privatization Commission.

The meeting, after a detailed discussion, constituted a committee under the chairmanship of the Finance Minister and representatives from SBP, SECP, Finance Division, and Privatization Division to evaluate alternative options for proceeding further.