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Government to receive $387m after successful bidding of UBL shares: Dar

June 13, 2014

Minister for Finance, Mohammad Ishaq Dar informed the National Assembly on Thursday that after successful completion of bookbuilding process for government's residual shares in United Bank Limited (UBL) transaction, the government will receive Rs 38 billion (US$ 387 million) from the successful bidders.

In his policy statement, the minister said that it was unprecedented that a large number of foreign investors along with the local investors also participated in the bidding process. The Minister also informed that Cabinet Committee on Privatization in its meeting held on Thursday allowed the Privatization Commission to proceed on the transaction.

He said that first transaction of the UBL was made in 2002 when the government off-loaded its 51 percent shares worth of Rs 12.35 billion then in 2005, 6 percent shares and then in 2007, 22 percent shares were off-loaded. "Now the present government has decided to off-load the remaining 19.8 percent shares",he remarked.

The minister added that within 7 working days, the amount would be included in the country's foreign reserves. Ishaq Dar also informed the House that the country's foreign reserves have reached to US$ 13.52 billion including $8.6 billion with State Bank of Pakistan and $4.9 billion with commercial banks. He expressed the hope that by June 30 this year, the country's reserves would cross $14 billion and the SBP reserves would cross $9 billion whereas commercial banks' reserves would cross $5 billion.

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Source: National Herald Tribune (Pakistan)

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