Pakistan is considering offering shares of the Oil and Gas Development Company Limited (OGDCL) to friendly nations in the Gulf region, including Saudi Arabia, the United Arab Emirates (UAE), Qatar, and Kuwait. The goal is to secure a better price for the shares, given the challenges faced during previous attempts to divest OGDCL’s shares on the stock market.
Past efforts to sell OGDCL’s shares on the stock market resulted in a significant drop in share prices due to alleged stock market manipulation. The government now aims to attract strategic investors from Gulf countries to ensure a more favorable valuation for OGDCL.
The decision to seek investment from Gulf investors follows previous setbacks in divestment efforts, including a sharp decline in share prices and limited interest from institutional investors during previous divestment attempts.
Furthermore, OGDCL has faced challenges related to circular debt, affecting its financial stability and hindering investment in the company’s oil and gas exploration activities. Addressing these issues is crucial to attract potential investors and improve OGDCL’s performance.
The Cabinet Committee on Privatisation (CCOP) has been involved in discussions regarding the divestment of OGDCL shares, with recent considerations to transfer the shares back to the Petroleum Division for potential strategic partnerships and investments.
The move to offer OGDCL shares to Gulf investors reflects Pakistan’s efforts to leverage international partnerships for economic development and investment in key sectors like energy exploration and production.
Story by Zafar Bhutta??
