According to sources, the Federal Cabinet has given the go-ahead to sell the UAE its holdings in five energy businesses for $2 billion on a government-to-government (G2G) basis.
Oil & Gas Development Company (OGDCL), Balloki Power Plant, Haveli Bahadur Shah Power Plant, and two further oil and gas enterprises are among these businesses.
According to sources, the Federal Cabinet approved the sale of shares in OGDCL and two more oil and gas businesses today in order to close a funding gap.
There was some debate over whether the International Monetary Fund (IMF) had requested that the government fill the gap; Miftah Ismail has stated that the IMF made no such request.
The funds were only being set up by the government to cover its external financing need.
According to sources, the government also intends to sell the Balloki Power Plant and the Haveli Bahadur Shah Power Plant to the UAE on a G2G basis in addition to the shares.
At a news briefing in Islamabad, Miftah Ismail had already disclosed the sale of both plants, but he had kept the identity of the buyer a secret.
Similar to yesterday, Miftah Ismail mentioned the government’s plans to sell both plants during a conference today without disclosing the plants’ worth or the nation’s name.
According to sources, the total capital required to build both plants would be $2 billion when business shares are sold.
It should be emphasized that the government has not yet released an ordinance in this matter because the National Assembly (NA) session is now in process and an ordinance cannot be issued during that time.
However, according to insiders, the ordinance won’t likely be passed until after the NA session is over.
It is anticipated that the G2G ordinance may be exempt from five separate regulations.
This comprises the laws governing the stock market, privatization, the Companies Act, the Public Procurement Regulatory Authority (PPRA), and the Securities and Exchange Commission of Pakistan (SECP).
To read our blog on “Govt. intends to sell state assets to foreign nations,” click here.
