Privatisation bears fruit: government to get Rs 571 million dividend from UBL

Society Pakistan & World Affairs
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KARACHI (April 25 2004): The Privatisation Commission said the state-assets sell-off has started paying dividends and for the first since 1974 the government has received dividend from the United Bank Ltd following its selling of 51 percent stake.

The Privatisation Commission in a meeting in Islamabad said that privatisation of United Bank Limited, after the transfer of management control to the private sector, has started yielding results for the national exchequer after the announcement of dividend by the new management.

For the first time since nationalisation in 1974 and just over a year following privatisation UBL declared a dividend of Rs 2.25 per share, or 22.5 percent, which means that shareholders will get nearly Rs 1.165 billion, and the government will receive Rs 571.095 million for its 49 percent shareholding in the bank.

Prior to the privatisation of UBL, the government had injected Rs 28.9 billion into UBL between 1997 and 2002 against which it received shares for the said amount in order to make UBL compliant with the capital adequacy requirements as prescribed by the State Bank of Pakistan and applicable to all commercial banking institutions operating in Pakistan.

http://www.brecorder.com/story.php?id=141549&currPageNo=1&query=&search=&term=&supDate=

Privatization starting to pay off. Let’s hope the trend continues with other privatized entities. :k:

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For the first time since nationalisation in 1974 and just over a year following privatisation UBL declared a dividend of Rs 2.25 per share, or 22.5 percent, which means that shareholders will get nearly Rs 1.165 billion, and the government will receive Rs 571.095 million for its 49 percent shareholding in the bank.

For the first time since 1974. That's when that ZAB started his nationalistation drive, and destroyed all the mass economic development of the 1960's. It has taken us upto now to fully recover from the economic devestation that man caused. Inshallah, we will never let the same kind of people mess up all the great economic achievments of the last few years.

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:biggthumb

I have been watching Hafiz Sheikh (the present privatisation commison head) for the last few years, a smart well educated Sindhi who did wonders as Sindh finance Minister and now as pritivatisation commison head. I think it will take a good 2 more years for things to really turn around because the process is destroying the power of many well entrenched interests( both civil and military, especially in Pakistan State oil), let's not forget right now Pakistan's state run corporations have been posting annual losses of over $1.5 billion dollars.. consistently since the late 70's and early 80's.