Pakistan eyes major asset sales by June

Karachi: Pakistan plans to sell shares of Kot Addu Power Co., National Bank of Pakistan and Habib Bank Ltd. by June, reviving a programme to divest assets that stalled after President Pervez Musharraf imposed emergency rule.

The share sales will be aimed at overseas investors, Finance Minister Salman Shah said. National Bank is the country's biggest by assets, rival Habib Bank has the most branches, and Kot Addu Power is the nation's largest power producer.

The companies "are already doing due diligence and preparing the ground work", Shah, who is in charge of the asset sale, said yesterday, adding that "for National Bank, we have done most of the homework".

The sales, targeting overseas investors, will test confidence after three months of violence and instability that claimed the life of former Prime Minister Benazir Bhutto and stalled elections for six weeks.

The turmoil delayed share sales that the government needs to help repay $38 billion of overseas debt. The country has raised about $7 billion selling state assets since the programme began 18 years ago.

The government aims to get as much as $3.5 billion in the fiscal year ending June 30 from the sale of state-owned assets, it said in November. It has so far raised $440.6 million, and investors said the three planned asset sales may not fare well.

"Completing this transaction and getting decent pricing in this fiscal year ending on June 30 seems difficult," said Nasim Begof Arif Habib Investments.

"It would be better timing to wait for the first or second quarter of the year starting July, when the overall picture will be clearer."