Pakistan approves privatization of 7% shares in energy giant OGDCL

A view of an OGDCL gas field is seen in this file photo. (Photo courtesy: OGDCL website)
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Updated 22 August 2020
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Pakistan approves privatization of 7% shares in energy giant OGDCL

  • The Cabinet Committee on Privatization also took a similar decision about 10 percent Pakistan Petroleum Limited shares 
  • Pakistan plans to privatize 19 state-owned entities to retire public sector debt 

KARACHI: Pakistan has approved the privatization of state-owned entities (SoEs) in its energy sector, including seven percent share of the Oil and Gas Development Company Limited (OGDCL), said an official statement on Friday. 

The Cabinet Committee on Privatization (CCOP) “approved the divestment of up to 7% government owned shares in the OGDCL through public offerings and directed to initiate the process of appointment of financial adviser for the process,” the ministry of finance informed in a statement after the cabinet committee meeting. 

A listed company, OGDCL holds the largest exploration acreage which, as of March 31, 2020, stood at 37 percent of the country’s total area under exploration. 

In 2019, Pakistan had decided to expedite the privatization process of 19 SoEs, including the OGDCL and Pakistan Petroleum Limited (PPL), to retire public debts. The government also approved the divestment of up to 10 percent of the PPL shares through public offerings. 

The CCOP also gave approval for the privatization of Guddu Power Plant (747 MW). 

Experts say the privatization of shares of energy sector companies will bring stability to the country’s stock market. 

“The privatization of public sector will increase the flow of funds, improve transparency and stabilize the market by improving liquidity,” Samiullah Tariq, head of research at the Pakistan-Kuwait Investment, told Arab News. 

On Friday, the OGDCL and PPL shares declined by Rs 2.73 to Rs 114.92 and Rs 3.49 to Rs 100.26, respectively, which equity experts attributed to the news of privatization of these entities. 

The CCOP also approved transaction structures for the privatization of Services International Hotel, Jinnah Convention Center and divestment of up to 20 percent shares of the Pakistan Reinsurance Company Limited held by the government and House Building Finance Company. 

Pakistan’s privatization of lossmaking SoEs started in 1991 and was criticized by various political parties. Between January 1991 and September 2015, the government completed 173 transactions of Rs 650 billion that included the sale of companies from power, oil and gas, transportation, telecommunications, banking and insurance sectors. 


Ex-Pakistan spy chief sentenced to 14 years for engaging in political activities, misusing authority

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Ex-Pakistan spy chief sentenced to 14 years for engaging in political activities, misusing authority

  • Hameed was arrested in August 2024 over accusations he was involved in land grabbing, snatching property from housing society owner
  • Pakistan military says Hameed provided all legal rights during court martial, can appeal against decision “at the relevant forum”

ISLAMABAD: Former Pakistan spymaster Lt. Gen. Faiz Hameed has been sentenced to 14 years of rigorous imprisonment by a military court after being convicted of engaging in political activities, violating the Official Secrets Act and misusing his authority and government resources, the Pakistan army said on Thursday.

Hameed, who served as the director-general of Pakistan’s powerful Inter-Services Intelligence (ISI) agency from June 2019 until October 2021, was arrested in August 2024 over accusations he was involved in land grabbing and snatching valuables and property from the owner of a housing society. The military said at the time multiple instances of violations of the Pakistan Army Act post-retirement had also been established against Hameed, court martial proceedings had been initiated and that he was in the army’s custody.

Investigations against senior officers of Pakistan’s powerful army are extremely rare in Pakistan, where the military has ruled for almost half of the country’s history and wields considerable influence even during periods of civilian rule. The development takes place days after Field Marshal Syed Asim Munir was appointed as the country’s first chief of defense forces. 

In its latest statement, the Pakistan military said court marital proceedings under Hameed began on Aug. 12, 2024, under the provisions of the Pakistan Army Act. It said the accused was tried under four charges related to engaging in political activities, violating the Official Secrets Act and misuse of authority and government resources, and causing “wrongful loss to persons.”

“After lengthy and laborious legal proceedings, accused has been found guilty on all charges and sentenced to 14 years rigorous imprisonment by the Court which has been promulgated on 11 December 2025,” the Inter-Services Public Relations (ISPR) said. 

The statement further said the military trial process complied with all legal provisions, adding that Hameed was provided all legal rights, including the right to select a defense team of his choosing. It said the former spymaster had the right of appeal at “the relevant forum.” 

“Involvement of convict in fomenting vested political agitation and instability in cahoots with political elements and in certain other matters is separately being dealt with,” the ISPR said. 

The military had said last year that Hameed was being investigated for creating agitation and unrest, which had led to multiple incidents of “instability,” including but not limited to riots by alleged pro-Imran Khan protesters on May 9, 2023. 

The nationwide riots broke out when the former prime minister was briefly detained on corruption charges. Thousands of Khan supporters took to the streets in anger, allegedly torching government and military buildings across the country. This was done, the military said, at “the behest of and in collusion with vested political interests.”

The violence led to a nationwide crackdown against Khan’s supporters and party leaders. The former premier and his party deny they instigated people to attack military and government buildings. 

Hameed is widely seen as close to being Khan, who has also been in jail since August 2023 on a slew of charges that he says are politically motivated.

In the past, Hameed, who retired from the army in December 2022, was widely accused by the ruling Pakistan Muslim League-Nawaz (PML-N) party of Prime Minister Shehbaz Sharif of bringing down the government of his elder brother, Nawaz Sharif, in 2017. 

The PML-N alleges Hameed worked with then opposition leader Khan to plot Nawaz’s ouster through a series of court cases, culminating in the Supreme Court’s disqualifying of him from office in 2017 for failing to disclose income and ordering a criminal investigation into his family over corruption allegations.

TOP CITY CASE

At the time of Hameed’s arrest in August 2024, the army said it had held a detailed inquiry against him in compliance with the orders of the Supreme Court on a petition filed by the management of the Top City housing society.

The petition, filed by the owner of Top City, Moeez Ahmed Khan (applicant), said the former ISI chief “misused” his office and under his direction, crimes were committed against Moeez and his family, including raids on his residence and business offices and arrests of him and his family members.

The petition said the applicant and his family members were robbed of their properties, the applicant was robbed of his business properties and compelled to transfer his businesses into the names of those nominated by Hameed, and false cases were registered against the applicant, his family and employees.

“Complying with the orders of Supreme Court of Pakistan, a detailed court of inquiry, was undertaken by Pakistan Army, to ascertain correctness of complaints in Top City Case made against Lt Gen Faiz Hameed (Retd),” the ISPR said last year. 

Days after Hameed’s arrest, the Pakistani military said it had arrested three more retired officers in connection with the proceedings against the ex-spy chief. 

Political parties and critics often accuse that the ISI spy agency interferes in politics and government in Pakistan. The military denies the allegations.