Islamabad - Arabstoday
The revival of Pakistan’s stock market with revision in Capital Gains Tax (CGT) regime from April 2012 is expected to help renew privatisation through initial public offerings (IPOs) and secondary public offerings (SPOs) of state-owned entities. Local investors, especially small investor are likely to avail investment opportunities as the government is planning to initiate eight IPOs and SPOs. The finance ministry has already established an Implementation Committee headed by the member FBR-Inland Revenue which will finalise the revised CGT during the month of March. An official of the finance ministry said that the privatisation Commission had been authorised to move ahead with the programme to privatise shares of public sector holdings through stock exchanges. The Privatisation Commission’s Capital Market Transaction Road-Map has been approved by the Cabinet Committee on Privatisation (CCOP) for initiating eight IPOs-SPOs through stock markets, the official said. The process is expected to start from next month. The main focus of this privatisation programme will be energy sector. In the power sctor, government plans to offer IPOs in the Islamabad Electric Supply Company (IESCO) and the Faisalabad Electric Supply Company (FESCO), and GDR of Kot-Addu Power company. According to Privatisation Commission, IPO plans some 10 per cent shares out of total government owned IESCO shares. It is estimated that this sale of IESCO shares could generate $30 million for national economy. Similarly, some 10 per cent shares of the government in Faisalabad Electric Supply Company (FESCO) would be offloaded which is expected to fetch $25 million. The proposed GDR of the Kot Addu Power Company (KAPCO) is to offer international investor five per cent shares and this transaction will generate around $22 million. The government plans to offer shares of three public sector oil and gas sector entities for sale, including the Pakistan Petroleum Limited (PPL), the Pak-Arab Refinery Company (PARCO) and the Government Holding Private Ltd (GHPL) through stock exchanges. The PC has plans to offer 2.5 per cent shares out of total 69 per cent owned by the government in the Pakistan Petroleum Limited through secondary public offering (SPO) at local stock exchanges. This SPO is estimated to be worth $70 million for the government. The government has 60 per cent shares in Pak-Arab Refinery Company (PARCO), and the Government Holding Private Limited (GHPL) is solely government-owned entity, however the number of shares to be sold will be decided at a later stage.