On Friday, the government decided against holding an open bidding process in favor of negotiating arrangements to sell state-owned assets to foreign nations. They also ruled out the option of giving the private sector managerial control over electricity distribution companies.
The Cabinet Committee on Privatization’s (CCOP) judgments represent a divergence from the privatization path outlined in a parliamentary act, which was intended to ensure the state received the greatest benefits and prevent discretion in such delicate circumstances.
The CCOP’s inaugural meeting, which was attended by the important cabinet ministers, was presided over by Finance Minister Miftah Ismail.
The CCOP discussed the terms of the discussed government-to-government (G2G) commercial agreements and determined that they were outside the purview of the Privatization Commission, according to an official statement released by the finance ministry.
According to the finance ministry, the CCOP instructed the Ministry of Finance to draft the proposal for structured transactions in consultation with the relevant Ministries for the consideration of the Cabinet.
The procedure to establish a new legal structure for the negotiated government-to-government trades has been ordered by Miftah Ismail to the Privatization Commission.
It was agreed that the finance ministry would draught a new legal framework for the federal cabinet’s approval, which would then decide whether to permit either a strategic sale or a deal-negotiated transfer of ownership of government enterprises listed on the stock market to a foreign government.
The method has been used for government assets sales that are moving quickly. However, Saudi Arabia had made a government-to-government bid to purchase two expensive LNG power plants during the PTI rule.
The previous administration rejected the offer on the grounds that it contravened the 2000 Privatization Ordinance.
Due to incomplete condition antecedents, such as SSGCL’s amendment of the Implementation Agreement and Gas Sale Agreement and the rescheduling of the loans, the bid valid for the Rs. 110 billion debt restructuring of the power plants management business expired last week.
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