KARACHI, May 26: That the government has pushed forward the deadline for privatisation of Pakistan State Oil — the country’s largest oil marketing company — to the next fiscal year comes as no surprise. When June 6 was declared as the date of bidding, but most people had taken it with a “mountain” of salt.
Going back in time, the country had perhaps first declared intention to sell-off 51 of the 54 per cent stake that the government holds in PSO to a strategic investor on October 14, 2002. Things did not perhaps go as well as planned and the bidding date had to be shifted to September 5, 2003.
But as everyone strained to listen, they heard no sound of the drop of a hammer. Dr Hafeez Sheikh the then privatisation minister put his finger on another deadline of December 15, 2003. That, nonetheless, switched to a “firm date” of April 26, 2004. But who could hold the hand of fate?
The long drawn out war in Iraq began, forcing bidders to ask for an extension. The Privatisation Commission conceded and it was announced that the sale transaction would be completed by June 30, 2005.
That date too passed by peacefully and still no sound of bid and an offer. On June 15, 2006 the Cabinet Committee on Privatisation (CCoP) summoned bidders to be seated to make their bid on March 10, 2006 (a day before the retirement of Dr Hafeez Sheikh).
But nothing came to pass and on October 11, 2006, the government huffed and puffed, announcing a “final date” for sell-off of PSO on December 5, 2006. Strangely, everyone forgot to open up a diary and note that the day would fall in the holy month of Ramazan, which would make it very difficult for bidders to shout their offer out, therefore a postponement.
The Privatisation Commission disputes that it never set May 19, 2007 as the next date, but most industry watchers say they did. Be that as it may, on May 24 this year, the prime minister himself pledged to sell-off PSO by end June.
Nearing the advent of June, we are now being told by Mr Zahid Hamid, the Minister for Privatisation, that bidding for the oil marketing giant has been pushed forward to next fiscal year.
Listed at the stock exchanges, the elusive privatisation of PSO, must have made millionaires of paupers and vice versa, as the market price of the oil marketing company’s stock ebbs and flows in line with the making and breaking of each deadline.
PSO share had peaked to Rs487 on March 15, 2005. Sold then, the country could have reaped a bonanza. But every cloud as they say has a silver lining. PSO was not as strong in 2002 as today. The price of the company stock then stood at Rs196; it now trades at Rs359. But it would be churlish to think that selling the company tomorrow could fetch it even a better price.
One is reminded of Mark Twain, who once remarked: “I never put off till tomorrow, what I can do the day after!” Instead of following that principle, the Privatisation Commission should set an iron cast deadline for the sell-off of PSO and stick to it. But if that be difficult, as an alternative, announce no deadline at all.
