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Reducing burden: Rs500b is the expected decline in state losses after privatisation and restructuring process. CREATIVE COMMONS

ISLAMABAD: 

As part of its privatisation plan, the government will sell half a dozen enterprises including two hotels in New York and Paris, offload shares in 10 companies in international and domestic capital markets and hand over management control of a dozen enterprises to the private sector.

The shares in state-owned units that the previous government gave away to the employees under the Benazir Employees Stock Option Scheme will also be offered to private investors, according to documents.

Overall, 31 enterprises, worth billions of dollars and belonging to sectors such as oil and gas, banking and finance, power, industries and real estate, will be privatised and restructured. Last week, the Cabinet Committee on Privatization (CCOP) approved the privatisation and restructuring strategy for these enterprises.

The government approved giving Pakistan Steel Mills under the control of private sector and reducing its shareholding. It is among five firms that will be first offered for privatisation. In case of Pakistan International Airlines, more money will be injected into the carrier before selling 26% stake to a strategic partner along with management control.

“From the date of privatisation, liabilities of the enterprises will be the responsibility of buyers,” said Muhammad Zubair, Chairman Board of Investment. Financial condition of an enterprise would determine its market price, he said.

The government approved sale of Roosevelt Hotel New York, Scribe Hotel Paris and Islamabad Convention Centre. Pakistan Engineering Company Limited (25% government shareholding) and National Power Construction Company (100% government stake) will be sold.

Heavy Electrical Complex (100% state-owned) and National Investment Trust (also 100% state-owned) will also be privatised while Small and Medium Enterprise Bank (94% government shares) will either be privatised or offered for merger with a second or third-tier bank.

“The government wants to complete the process in the next one to one and a half years,” said Zubair, adding the privatisation and restructuring process was expected to reduce annual losses by Rs500 billion.

There are 10 enterprises whose shares will be offloaded in capital markets, either domestic or international, according to the strategy approved by the CCOP.

The government will preferably sell shares in Oil and Gas Development Company (85% government stake) in international capital markets. Shares in Pakistan Petroleum Limited (78% government stake) will be offloaded both in international and domestic markets.

Shares in Mari Petroleum (20% government stake) will be sold in the capital market through a secondary public offering or offered as block sale to joint venture partners.

Government Holdings Private Limited (100% state-owned) will either be listed on the stock market or working interests in its specific blocks will be sold. Pak-Arab Refinery Company’s shares (60% owned by government) will be offered in the stock market subject to consent of the joint venture partner.

Approval has been given to a plan to segregate different operations of Pakistan State Oil and privatise some of those.

According to the strategy for Sui Northern Gas Pipelines and Sui Southern Gas Company, the government will first segregate various operations and some of these will be offered for privatisation.

Shares in Habib Bank Limited (42% government stake), United Bank Limited (20% government shares) and Allied Bank Limited (10% government stake) will be offloaded in the stock market through a secondary public offering. In case of National Bank of Pakistan (76% shareholding), the government will reduce its shareholding and give away management control or offer the bank as block sale to qualified investors.

State Life Insurance Corporation (100% state-owned) will be listed on the stock market while shares in National Insurance Company Limited (100% state unit) will be divested along with management control. Government shareholding (51%) in Pakistan Reinsurance Company will be reduced including giving away management control.

In case of profitable companies like banks and oil and gas firms, the government would not sell all of its shares, Zubair said.

Finally Govt is trying its best..

Expansion plan: $928m is the estimated cast of the extension project, $840 million of which will be finance to World Bank loan. PHOTO: FILE

ISLAMABAD: Tarbela Dam’s power generation capacity will increase to 4,888 megawatts (MW) with the completion of the fourth extension hydropower project, which will add 1,410MW to the existing capacity.

Official sources say that Tarbela will become the largest water reservoir in the country in terms of hydropower generation after the completion of the extension project, while Mangla will stay the largest water storage reservoir of the country.

The Water and Development Authority (Wapda) had already awarded civil works contract worth Rs26.053 billion to Chinese company, Sinohydro for the fourth extension project.

According to sources, the World Bank had also agreed to provide a loan of $840 million for the project. The extension project will take three and half years to complete at an estimated cost of $928 million.

After the installation of three units of 1,410MW, the generation capacity of the dam will touch 4,888MW.

On completion, the project will add 3.84 billion units per annum to the national grid. Annual benefits to be derived from the project had been estimated at Rs30.7 billion. The sources said that the project will pay back its cost in three years. The project will also be instrumental in saving foreign exchange on import of almost one million ton of furnace oil annually, required to generating equal amount of power from thermal sources.

The project will also provide a cushion to undertake rehabilitation and up-gradation of the existing Tarbela powerhouse after the completion of extension projects.

Tarbela fourth extension hydropower project is part of the government’s plan to focus on cheaper sources of power production, which is being implemented by Wapda on priority. This strategy aims at adding a sizeable amount of power to the system, while also improving the country’s energy mix

IMF

IMF warns the outlook for global economy could get bleaker if the US political standoff over finances drags on. PHOTO: REUTERS

WASHINGTON: The International Monetary Fund on Tuesday lowered its growth forecast for Pakistan and the global economy and warned the outlook could get bleaker if the US political standoff over finances drags on.

The Pakistani economy is expected grow 2.3 per cent year-over-year in 2013 and 3.6 per cent in 2014, the IMF said, revising July estimates down by 0.7 and 0.1 percentage points per year, respectively.

The global economy’s growth percentages were also revised downwards with estimates being brought down by 0.3 and 0.2 percentage points.

Four years after the Great Recession ended, “global growth remains in low gear,” the IMF said in its World Economic Outlook report.

Advanced economies, in particular the United States, are showing signs of pick-up, while emerging-market (EM) economies, although still accounting for most global growth, are losing more momentum than previously thought, the IMF said.

“Global growth is still weak, its underlying dynamics are changing, and the risks to the forecast remain to the downside,” the IMF said.

Two risks were a particular worry, it pointed out the US Federal Reserve’s plan to exit the exceptionally easy-money policy it has pursued to pull away from the brink of depression, and China’s slowing growth.

IMF said that financial markets were growing convinced that loose US monetary policy was reaching a “turning point” after Fed officials started talking in May about tapering their program of $85 billion a month on asset purchases, known as quantitative easing.

Though the Fed has yet to begin to taper, the mere talk of tapering QE led to an unexpectedly large increase in long-term yields in the United States and many other economies, slowing capital inflows to emerging-market economies, it said.

As for China, it appears increasingly likely that the world’s second-largest economy will grow more slowly over the medium term than in the recent past, a prospect especially affecting the commodity exporters among the emerging and developing economies.

Overall, the IMF left unchanged its gross domestic product (GDP) growth forecasts for the advanced economies, at 1.2 per cent in 2013 and 2.0 per cent in 2014.

In the US, growth in the world’s largest economy would tick along at 1.6 per cent in 2013, picking up to a 2.6 per cent pace next year, slightly less activity than the IMF projected in July.

“At the time of writing, a political standoff in the United States has led to a shutdown of its federal government. The projections assume that the shutdown is short, discretionary public spending is approved and executed as assumed in the forecast, and the debt ceiling – which may be reached by mid-October – is raised promptly,” the IMF said.

“While the damage to the US economy from a short shutdown is likely to be limited, a longer shutdown could be quite harmful. And, even more importantly, a failure to promptly raise the debt ceiling, leading to a US selective default, could seriously damage the global economy.”

The IMF said the eurozone’s recession this year would not be quite so deep, a 0.4 per cent contraction, a 0.1 percentage point improvement from its July forecast. The European single-currency bloc is expected to return to growth next year, albeit at a tepid 1.0 per cent annual rate.

Japan, battling years of deflation and stagnation, is showing an “impressive pickup” in growth thanks to the Bank of Japan’s easing policies and the government’s stimulus, the IMF said.

It estimates the new policies may have boosted GDP by about 1.0 per cent. In minor revisions, the Fund predicts the world’s third-largest economy will grow 2.0 per cent in 2013, but slow to 1.2 per cent in 2014 under pressure from tightening fiscal policy.

Growth forecasts for China were lowered a few tenths of a point for both years, to 7.6 percent in 2013 and 7.3 percent in 2014.

Estimates for India and Mexico growth were slashed the most, down by 1.8 points and 1.7 points for 2013, to 3.8 per cent and 1.2 per cent, respectively.

Growth in Brazil was projected at 2.5 per cent for both years, but the 2014 number was lowered by 0.7 point.

Slowdowns in China, India and Brazil have been largely responsible for the downgrade on growth in emerging market and developing economies. The IMF cut about half a point off its July update for that group of economies, to 4.5 per cent in 2013 and 5.1 per cent in 2014.
Russia took a one-point hit, with GDP expected to expand only 1.5 percent this year, before picking up to 3.0 per cent.

Growth for the group combining the Middle East, North Africa, Afghanistan and Pakistan was lowered to 2.3 per cent this year, while Sub-Saharan Africa would see it slip to 5.0 per cent.

The IMF cautioned that the end of US quantitative easing could result in a greater and longer-lasting tightening of global financial conditions than currently expected, putting brakes on growth.

“What is more worrisome, monetary policy in the advanced economies could be stuck at the zero-interest bound for many years.

Over time, worrisomely high public debt in all major advanced economies and persistent financial fragmentation in the euro area could then trigger new crises.”

Ronaldinho.. Would PSG offered him a Contract ??

The Selecao legend has revealed that he would be open to finishing up at the Parc des Princes, where he spent two seasons before moving to Barcelona

Atletico Mineiro playmaker Ronaldinho has revealed that he could imagine ending his career at Paris Saint-Germain.

The former Brazil ace played for les Parisiens between 2001 and 2003 and says he could picture himself bringing the curtain down on his illustrious career at the Parc des Princes.

"Today, I do think about the future," the 33-year-old told reporters. "But any player would be delighted to have the opportunity to finish his career in a big club like PSG.

"PSG are very strong at the moment; a great team."

He then praised his fellow countryman Lucas Moura, who he believes has the potential to become one of game's top players. 

"Lucas is a guy who has the means to conquer the world, thanks to his quality and speed. Soon the whole world will applaud him," the World Cup winner said of the PSG winger.

Ronaldinho left PSG for Barcelona, where he enjoyed the most productive years of his career, with the gifted No.10 winning two Liga titles and a Champions League during his five-year stay at Camp Nou.

Klopp rules out Dortmund move for De Bruyne

It had been claimed that die Schwarzgelben were interested in the Belgian but even the player's agent insists there is no chance of him leaving Stamford Bridge

Jurgen Klopp has dismissed speculation that Borussia Dortmund might make a January move for Chelseamidfielder Kevin De Bruyne.

Despite featuring in the Blues' opening two games of the new Premier League season, the Belgium international has reportedly fallen out of favour with coach Jose Mourinho.

However, Klopp insists there is no truth in the rumour that Dortmund are considering signing De Bruyne on loan.

"We have signed great players over the summer," Klopp told Deutsche Presseagentur. "We have a squad we are very happy with.

"He [De Bruyne] is actually not one we are after. He is at Chelsea, and given the size and quality of the Chelsea first-team squad, it's quite usual he may sometimes miss out on one or two matches."

Furthermore, while De Bruyne spent last season on loan with another Bundesliga outfit, Werder Bremen, the 22-year-old's agent, Patrick De Koster, is adamant that there is no chance of his client leaving Stamford Bridge before the end of the season.

"This summer we decided to stay with Chelsea, and we knew the competition would be hard and that Kevin had to fight," he told Bild.

"He will continue fighting. I have no contact to other clubs. Even if we were in the transfer period, I would not have any contact."

De Bruyne joined Chelsea from Racing Genk last summer before immediately being sent to the Weserstadion.

Will it be Shaan vs Akshay Kumar this Eid?

Waar is expected to do better at the local box office over Boss. PHOTO: FILE

On Eidul Fitr, Shahrukh Khan’s Chennai Express and Humayun Saeed’s Main Hoon Shahid Afridi (MHSA) were expected to clash at the box office. However, at the eleventh hour, MHSA’s release was ultimately delayed as a result of which one couldn’t really gauge the audience’s response when a mainstream Pakistani film would be in competition with a big-budget Bollywood film. And now, with Eidul Azha around the corner, it’s time for Shaan’s Waar and Akshay Kumar’s Boss to hit the screens simultaneously!

So far, Boss has been advertised for a local release with subject to censors while distributors of Waar are aiming to capture around 50 screens in Pakistan. If Boss is not forced into a delay or a possible ban by committees that often visit the culture ministry to “protect the national interest” then, the local box office this Eid would portray the true potential of a big-budget Pakistani film in presence of a genuine competitor.

If both films release on Eid, then Waar is expected to do better business at the local box office, whereas Boss is just going to steal a minor share of its success refraining Waar from reaching a major milestone. Nonetheless, the audiences and multiplexes will have two big films to choose from and the footfall of one film will help the other

Bale must stand up to Ronaldo to succeed at Madrid - Redknapp

The QPR boss insists the Welshman needs to work with the Portuguese superstar while not being intimidated by him if he is to justify his world-record price tag

Gareth Bale will have to stand up to Cristiano Ronaldo if he is to survive and thrive at Real Madrid, according to former manager Harry Redknapp.

Bale, who first broke into the Tottenham team under the current QPR boss, eclipsed Ronaldo's transfer record by making an €100 million move to Real Madrid this summer.

And Redknapp believes Santiago Bernabeu's biggest superstar presents the biggest obstacle to the Welshman making a success of his time in Spain.

"His biggest test will be to step out of the shadow of Cristiano Ronaldo with confidence. That won’t be easy," the QPR boss wrote in his new autobiography, serialised in the Daily Mail.

"Ronaldo is a huge star at Madrid and will probably want to take nine out of 10 free-kicks - at least. Gareth will have to assert himself and that will require a strong mind.

"He has to think ‘I’m an £86million player’ and act like it, taking responsibility, claiming the ball when he fancies his chances. 

"And yet at the same time he cannot dwell on his fee and what it means too much because that would put him under immense pressure. It is a tricky balancing act. 

"He will have to be ready for the matches when he goes it alone, has a shot, misses and Ronaldo starts throwing his arms up in the air.

"He cannot, at that point, go into his shell and become this timid little creature. But it is not natural for Gareth to behave in an assertive way. Don’t get me wrong, he knows he is good. 

"The fee is crazy, amazing money, but he wouldn’t have fought so hard to get the deal done if he didn’t fancy his chances of living up to expectations in Madrid.

"Yet, equally, Gareth is a quiet lad, who spends time with his girlfriend and family, and I’m not sure being in the same bracket as Ronaldo and Lionel Messi will suit him.

"If Ronaldo feels threatened by Gareth’s arrival, Madrid could be a lonely place so he will need to lean a lot on Ancelotti, who speaks good English, and Paul Clement, Carlo’s assistant, who is English.

"Luka Modric is another old friend who could help him settle in.

"The one thing the club cannot provide for Gareth and Cristiano is a ball each — so they will need to work hard on that partnership because they are such similar players."

Redknapp insists he recognised Bale's potential very early on - even if the Welshman did seem a little too preoccupied with his hairstyle.

"He drove me mad in training," the QPR boss added. "Technically, he was outstanding but he always seemed to be playing with his hair. It was never right. 

"He’d be flicking the fringe or wiping it out of his eyes and I would be going quietly mad, just watching. ‘Gareth, leave your barnet alone! Gareth! Stop touching your hair!’