ISLAMABAD: The International Monetary Fund (IMF) is behind the government decision to sell Oil and Gas Development Company Limited (OGDCL) shares even at lower prices of Rs216 per share to generate $600-700 million despite the recovery of oil in Sindh by the company.
Sources said that the Fund had linked the $1.1 billion tranches with the sale of OGDCL shares, which have been devalued due to decline in international oil prices and prolonged sit-ins in the federal capital.
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The Cabinet Committee on Privatization (CcoP) has approved the floor price of OGDCL shares at Rs216/- per share as recommended by the Privatization Commission.
The government is going for the capital market transaction of OGDCL at a time when its share price is constantly declining due to the dip in oil prices in international market from last few months. The OGDCL’s shares price closed on 221.6 on Thursday, which was Rs227.77 on October 31, according to the Karachi Stock Exchange website.
Meanwhile, Shahid Khaqan Abbasi on Thursday informed the Senate Standing Committee on Petroleum and Natural Resources that government is having 70 percent shares in OGDCL in which only 10 percent shares would be disinvested. The government is expecting to generate $600-700 million from this process, he said and added that it is not happening for the first time as government had already disinvested its shares in the past.
Meanwhile, another petition has been filed in court to halt the privatisation of Oil & Gas Development Company Limited (OGDCL) and this time an eye specialist has moved the Islamabad High Court (IHC) for this purpose.
Justice Athar Minallah has sought reply from the federal government within two weeks on a petition filed by Dr Babur Zahiruddin, who is also a shareholder of the company. Secretary of Petroleum and Natural Resources, Finance Secretary, Cabinet Secretary, Chairman Privatisation Commission and Council of Common Interests (CCI) have been issued notices for reply.
The petitioner’s lawyer, GM Chaudhry, argued that the OGDCL was the common property of federation and provinces and the federal government could not privatise the company without consulting provinces. The petitioner also raised the point that the whole procedure had also been kept ‘secret’ from the general public.
