Privatisation mode for state units and assets

The PML-N government has given final touches to the mode of divestment of public sector entities and assets identified for the first phase of privatisation.

Documents from the privatisation commission reveal that the government has updated the list of upcoming transactions with management control, along with the 32 assets and state enterprises that are to be sold off.

The list approved by the cabinet’s committee on privatisation includes 10 enterprises whose shares will be offloaded in either the domestic or international capital market.

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

Shares in Mari Petroleum (20 per cent government stake) will be sold through a secondary public offering (SPO) or offered as block sale to joint venture partners. Similarly, 100 per cent state-owned Holdings Private Limited will either be listed on the stock market or the working interests in its specific blocks will be sold off.

Pak-Arab Refinery Company’s shares (60 per cent owned by the government) will be offered in the stock market, subject to the consent of the joint venture partner.

In the oil and gas sector, it was decided to segregate business segments. The suitable business segment of Pakistan State Oil (25 per cent government stake) will then be divested.

Similarly, in the case of Sui Northern Gas Pipelines and Sui Southern Gas Company, the government will first segregate various operations of these companies and then offer some of them for privatisation, where possible.

Shares in Habib Bank Limited (42 per cent government share), United Bank Limited (20 per cent government share) and Allied Bank Limited (10 per cent government share) will be offloaded in the stock market through secondary public offerings.

In the case of the National Bank of Pakistan (76 per cent shareholding), the government will preferably reduce its share with management control, or offer the bank as a block sale to qualified investors. But there may be strong resistance, because the bank also managed to post profits in the past few years despite the huge manpower inducted into it by the previous government.

State Life Insurance Corporation (100 per cent state-owned) will be listed on the stock market, while shares in the National Insurance Company Limited (100 per cent state unit) will be divested along with management control. Government shareholding (51 per cent) in the Pakistan Reinsurance Company will be reduced, and its management control will also be given away.

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

In the power sector, the enterprises to be privatised through bidding with management controls include the Islamabad Electric Supply Company, Faisalabad Electric Supply Company, Hyderabad Electric Supply Company, Jamshoro Power Generation Company, Northern Power Generation Company, Lakhra Power Generation Company and National Power Construction Company.

However, in case of Kot Addu Power Company (46 per cent government share), further shares will be offloaded in both domestic and international capital markets.

Interestingly, the list does not include loss-making power supply companies of Peshawar, tribal areas and Gujranwala etc. Meanwhile, the Islamabad Electric Supply Company, which has been rated as one of the most efficient companies in the power sector, has still been placed on the list of state entities to be privatised.

The government has decided to reduce its shareholding in the Pakistan Steel Mills and approved giving it under the control of the private sector. In the case of the Pakistan International Airlines, restructuring of the carrier will be carried out before 26 per cent of its stakes are sold off to a strategic partner, along with management control.

In the case of the Pakistan Engineering Company, the government’s liabilities will initially be retired. This will be followed by the transfer of management to the private sector. The Pakistan National Shipping Corporation will be offered for privatisation with management control as well.

In the real estate sector, the government has approved the sale of Roosevelt Hotel New York, Scribe Hotel Paris and the Islamabad Convention Centre. In the case of the convention centre, which is at a very prime location, some business tycoons are reported to be interested in building a multi-story hotel.

However, the government needs to consider five factors in the current phase of privatisation. It should not be motivated by fiscal considerations, but a carefully conceived industrial policy. The privatisation policy needs to be designed to spur industrialisation.

The new policy should also be free from the influence of powerful business tycoons, who were major beneficiaries of previous privatisation programmes. Privatisation should be transparent and not result in rent-seeking. Nor should it lead to distress sales.

The government should award the management contracts for the operation of state enterprises for specific time periods and under well-defined performance criteria.

Lastly, the privatisation policy should ensure that fresh investment is not fully diverted to the buying of state-owned enterprises, and is used to do away with imbalances in the industrial economy and the building of physical infrastructure

Ferrer stuns Nadal, Djokovic beats Federer in Paris Masters semis

Published 2013-11-03 01:32:41

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PARIS: David Ferrer stunned top-seeded Rafael Nadal 6-3, 7-5 and Novak Djokovic beat Roger Federer from a set and break down in the Paris Masters semifinals on Saturday.

Djokovic prevailed 4-6, 6-3, 6-2 for his 16th straight match win.

Ferrer had lost nine straight times to Nadal, including in this year's French Open final, and hadn't beaten his fellow Spaniard in almost three years. But this time the defending champion hit 29 winners to 19 and won 14 of 18 net points.

“I played maybe my best match this season,” Ferrer said, “very aggressive with my forehand and with my shots.” Ferrer broke for 3-1 and went a set up with a low forehand volley. He capitalised on a wide forehand from Nadal to lead 2-1 in the second set.

Ferrer saved five break points in that set but failed to serve out the match at 5-4, allowing Nadal to break back. Nadal gave Ferrer another chance as he hit a forehand long to drop serve. Ferrer went on to seal the victory with a forehand winner.

“I was slow,” Nadal said. “Always I was a little bit late on the ball. So against a player like David, he's quick and he plays inside the court, and he puts pressure on you all the time, you are dead, no?”

Nadal's best result at the Paris Masters was runner-up in 2007. He still leads 20-5 against Ferrer but acknowledged his successful year is taking its toll on him.

“At the end of the season, a lot of times the body, the mind, and the tennis are tougher for me,” Nadal said. “I arrived a bit more tired, and the condition of these courts didn't help me a lot.”

Nadal unseated Djokovic atop the rankings by reaching the final of the China Open last month. He looks to finish the season as No. 1 for the first time since 2010. In the other semifinal, Djokovic was facing Federer for the 30th time but the first this year.

Djokovic struggled with his serve early, making two straight double faults to hand Federer a break point. Federer converted it for 2-1 with a backhand volley after hitting a drop shot to draw the Serb to the net. The 17-time Grand Slam champion saved four break points at 5-4 and took the first set when Djokovic hit a backhand return long.

“The key was just to hang in there and stay with him,” Djokovic said. “I knew that he's going to be very aggressive from the start coming to the net. He used his opportunities really well. He was very efficient at the net. Then, I tried to decrease the number of unforced errors and step in when it's needed.”

Federer, who won the Paris Masters two years ago, capitalised on an unforced error from Djokovic to break the Serb in the opening game of the second set. But Djokovic immediately broke back before taking a 4-2 lead when Federer netted a routine forehand volley.

The second-seeded Serb now seemed in control of the match, hitting 11 winners to five for Federer in the second set. “My serve was better towards the end of the second set,” Djokovic said. “And I got more free points, let's say, on my first serves, which was one of the keys today.”

''I needed to have better placement on my serve and just not go too much for the power but rather accuracy, and it worked well afterwards.”

The Australian Open champion broke Federer twice in the final set and clinched the victory with a forehand winner.

Djokovic still has a slim chance to finish the season ahead of Nadal in the rankings.

Despite the loss, Federer still leads 16-14 against Djokovic. “I was pretty happy with my level of play,” the Swiss said. “I wish I could have kept it up for a bit longer and put him under pressure.”

Germany, US to ink no-spy deal

BERLIN, Nov 2: Germany and the United States are to strike a two-way deal not to spy on each other in the wake of the diplomatic furore sparked by the Edward Snowden revelations, a German newspaper reported.

A delegation of German chancellery and intelligence officials reached the deal during talks at the White House this week, the Frankfurter Allgemeine Sonntagszeitung (FAS) reported in its Sunday edition.

The accord is set to be concluded early next year, it said, citing sources close to the German government.

A government spokeswoman declined to comment.

Spy claims have been ricocheting across the Atlantic in a row that has frazzled ties between US and European allies.

Top German envoys were in Washington on Wednesday to rebuild a “basis of trust” after alleged US tapping of Chancellor Angela Merkel’s phone in sweeping surveillance operations that have outraged Europe.

Merkel’s spokesman said the talks were aimed at clarifying the allegations and working out “a new basis of trust and new regulation for our cooperation in this area”.

The chancellor’s foreign policy advisor Christoph Heusgen and intelligence coordinator Guenter Heiss met top US officials including National Security Advisor Susan Rice, Director of National Intelligence James Clapper and counter-terrorism advisor Lisa Monaco.

According to the FAS report, the head of Germany’s secret service is now to hold a top-level meeting with US intelligence chiefs on Monday in Washington.

The government spokeswoman did not confirm plans for the meeting.

France, Italy and Spain have also protested after media reports, based on leaks from US fugitive Edward Snowden, that Washington collected tens of millions of European telephone calls and online communications as part of anti-terror operations.—AFP

Sharma smashes double ton as India sink Australia

NEW DELHI: India’s 26-year-old batting star, Rohit Sharma, became the third batsman to score a double hundred in ODIs, after compatriots Virender Sehwag (219* vs WI) and Sachin Tendulkar (200* vs SA), as his side notched up a mammoth 383/6 against Australia in the series-deciding 7th ODI in Bangalore.

Sharma's 209 included a whopping 16 sixes, a new record in ODIs, and 12 fours and came of a mere 158 balls and left Australia having to complete the second highest successful ODI run chase of all time to win the series, a target they fell short of by 57 runs despite a valiant counter-attacking hundred by James Faulkner.

“Getting a 200 in the ODI format is a wonderful feeling,” said Sharma.

“We knew it's small ground and runs are easy to come by, so we wanted to stay in and capitalise.

“I was disappointed not getting a hundred in the last game, so I wanted to play big and keep the momentum going.

Pakistan Taliban appoint interim leader: spokesman

MIRAMSHAH: The Pakistani Taliban have appointed an interim leader to head the group temporarily after the death of commander Hakimullah Mehsud in a US drone strike, a spokesman told AFP Sunday.

Mehsud, who had a $5 million US government price on him, was killed along with four cadres in North Waziristan tribal district near the Afghan border on Friday.

Shahidullah Shahid, the main spokesman for the Tehreek-e-Taliban Pakistan (TTP) said a permanent replacement had not been chosen yet.

“Asmatullah Shaheen Bhittani, the head of the supreme shura, has been appointed as temporary head of the TTP,” Shahid told AFP, adding that prayers for Mehsud were still going on.

The killing of Mehsud sparked a furious reaction from the Pakistani government, which accused Washington of sabotaging fledgling efforts towards peace negotiations with the Taliban.

Interior minister Chaudhry Nisar said a group of clerics had been ready to go and meet the TTP to initiate talks, which have been backed by all major political parties, when the drone struck.

Shahid refused to say there was no chance of the talks going ahead, but accused the government of kowtowing to Washington and cutting a deal to “sell” the militants.

“Nobody in history has ever negotiated with slaves,” he said.

“We were waiting for a meeting, while the Pakistan army and government was sitting with the US finalising deals to sell us.” And he stopped short of vowing revenge for Mehsud, who took over as TTP chief after founder Baitullah Mehsud in a drone strike in 2009.

“Time will tell whether we take revenge of his martyrdom or not,” he said.

In the past, the TTP has responded to its leaders being killed with deadly violence.

Man claims he told US in 2003 about Osama’s hideout

DETROIT: An American businessman claims that he told federal investigators the location of Osama bin Laden’s compound in Pakistan years before his killing and is seeking a $25 million reward.

A letter obtained on Friday by The Associated Press from a Chicago-based law firm representing Tom Lee says the 63-year-old gem merchant reported the location of Al Qaeda leader’s compound in Abbottabad in 2003.

The letter sent by the Loevy & Loevy law firm to FBI Director James Comey in August claims a Pakistani intelligence agent told Lee that he escorted Osama bin Laden and his family from Peshawar to Abbottabad.

According to the letter, Lee shared the information with customs and FBI agents. Lee reported that the Pakistani agent “was a member of a family that Mr Lee had done business with for decades”, the letter said, and the agent and his family opposed the Al Qaeda chief.

A request to speak to Lee and Michael Kanovitz, the attorney who signed the letter, was made to the law firm. The FBI didn’t immediately comment.

Bin Laden was killed in May 2011 during a Navy SEAL raid. US officials have said the Abbottabad house wasn’t built until 2005, and Pakistani officials have said they believe he moved there in the summer of that year.

The letter said Lee made “numerous attempts” to claim his reward but received no response. “Mr Lee precisely identified the whereabouts of the most notorious terrorist of our era, a man responsible for the World Trade Centre attacks, the most devastating act of terror committed on American soil, and numerous other assaults on Americans,” the letter said.

Lee told The Grand Rapids Press in an email on Friday that he couldn’t understand why the government waited to act. “It disturbs me, and it should disturb every American, that I told them exactly where bin Laden was in 2003, and they let him live another eight years,” he said in the email.

Bin Laden had slipped away from US forces in the Afghan mountains of Tora Bora in 2001, and the CIA believed he had taken shelter in the tribal areas of Pakistan. The US was eventually able to find him by tracing his courier, Ibrahim al-Kuwaiti.

One of Osama bin Laden’s wives told Pakistani investigators that she moved to the Abbottabad home in 2006 and never left the top floors.—AP

Fernando Llorente wants Arsenal transfer in January

Fernando Llorente is keen on a January move to Arsenal - to save his World Cup hopes. Llorente is on the Gunners' hit-list of possible January deals to boost their squad and push for the Premier League title.

Arsenal are watching developments with the Spaniard closely and are determined to sign a striker in January and believe Llorente could be interested.

The 28-year-old Spain international is only now beginning to get a chance at the Turin giants following a summer move, and his advisers are concerned his World Cup chances may be affected if he is not a regular in Serie A.

Arsenal scouted Llorente before he joined Juve on a free last summer from Spain's Athletic Bilbao.They have now been alerted to his potential availability.

Any transfer would almost certainly be a loan as Arsenal look for more long-term options, and may not want to make a big signing if they are already cup-tied for the Champions League.

Llorente could fill a short-term gap and provide back-up and competition for Olivier Giroud, who is Arsenal's only fit and senior centre-forward at the club.