Pakistan is hoping a sell-off of government stakes in state-owned energy companies, banks and troubled airline PIA will bring a much-needed boost to foreign exchange reserves.
Prime Minister Nawaz Sharif's privatisation program cleared an important hurdle this week with the approval of financial advisers for the sale of shares in more than half a dozen state-owned companies.
Pakistan last month received a second payment under a $US6.7 billion ($A7.6 billion) International Monetary Fund (IMF) loan package, conditions for which included action to privatise state-owned businesses.
Among the offerings will be shares in the Oil and Gas Development Company Limited (OGDCL), Pakistan's top hydrocarbon exploration and development concern.
OGDCL shares have been traded on the London stock exchange since 2006 and the government now wants to sell off more of its stake in the company.
"We will wait the financial advisers to make the privatisation strategy but I personally want to offload 10 per cent... of OGDC at the global capital market," Mohammad Zubair, the chief of the Privatisation Commission, told AFP on Friday.
The state holds about 75 per cent shares in the OGDCL, after already offloading a 25 per cent stake.
Arif Habib Securities, a Karachi-based brokerage and financial research company, estimates the OGDCL sell-off will raise about $US1 billion.
Pakistan's forex reserves have dwindled in the past year, sinking to just $US3.2 billion, barely enough to cover the country's foreign payments for a month.
Opposition parties have condemned the privatisation plans, accusing Sharif of cronyism and selling off valuable national assets at cut price.
Besides OGDCL, the government intended to sell 20 per cent shares of Habib Bank Limited, the largest Pakistani bank, in local and international markets.
Government shares in United Bank Limited, Allied Bank Limited and Pakistan Petroleum Limited will also be offloaded.
The commission board has already approved selling a 26 per cent stake in Pakistan International Airlines, the national flag carrier and a financial adviser is to be appointed by March.
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