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Sunday, November 17, 2024

Pakistan Govt to sell OGDCL to UAE for 2 billion?

The decision has been taken to sell a stake in oil and gas companies and the state-owned power company to the United Arab Emirates for $2-2.5 billion to avoid the risk of bankruptcy.

Pakistan’s Government to Sell Profitable Pakistani Company OGDCL To Foreigners. Cash-strapped Pakistan’s federal cabinet has approved an ordinance that seeks to sell government assets to other countries by going beyond all due process and regulatory scrutiny.

The current state of Pakistan is precarious, therefore 100% stacks of the PIA, PSO, OGDC, SSGC, SNGPL, and PPL were put up for sale to keep Pakistan from becoming a defaulting government.

Read more: Pakistan mulling to purchase Iranian LPG with rupee

To simply prevent the nation from going into default, the government repealed six key laws. The current state of Pakistan is not good since friendly nations are not providing Pakistan with financial assistance.

On Saturday, this information was provided in media reports

According to the news, the administration made this choice to prevent the possibility of national bankruptcy.

Sources said that during today’s meeting of the Federal Cabinet, the approval to sell shares of OGDCL and two other oil and gas companies was given to fund the external financing gap.

There had been a controversy regarding whether the International Monetary Fund (IMF) had demanded the country finance the gap to which Miftah Ismail has said that no such demand was placed by the IMF. The government was only arranging the funds to finance its external financing deficit.

Read more: The Reko Diq Mine project and its importance for Pakistan

Along with the sale of the shares, the government is also planning to sell Balloki Power Plant and Haveli Bahadur Shah Power Plant on a G2G basis to UAE, sources revealed. Miftah Ismail had previously mentioned the sale of both plants during a press conference in Islamabad, however, he had not revealed the country’s name.

Similarly, today during a seminar, Miftah again mentioned the government’s plans to sell both plants without mentioning the value of the plants or the name of the country.

Sources say that the total funding through selling company shares, and both plants would amount to $2 billion.