The Government of Pakistan aims to generate approximately $815 million by selling shares in the Oil and Gas Development Co Ltd (OGDCL), marking the largest public offering from a local entity in nearly eight years.
This substantial financial move involves offering 323 million ordinary shares alongside global depositary shares (GDS), with each GDS representing 10 ordinary shares. These GDSs are set to be traded in London, broadening the investment opportunity to a global audience.
This strategic sale is part of a broader privatization initiative the government announced earlier this year. The ambitious plan includes privatising 68 state-owned entities, encompassing 10 banks, to raise $5 billion over the next two years. This initiative is driven by the government’s commitment to reduce the fiscal burden of state-owned enterprises and enhance their efficiency by leveraging private sector management practices and capital.
The privatization of OGDCL not only reflects the government’s resolve to improve its assets’ financial health and operational efficiency and signals to international investors that Pakistan is open for business and investment. The proceeds from this sale are expected to support critical economic reforms and bolster the country’s financial reserves, thereby contributing to overall economic stability.
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