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In the capital city of Islamabad, the Privatisation Commission successfully concluded the divestment proceedings of the Heavy Electrical Complex (HEC) on Tuesday, delivering the share certificates to the purchaser, IMS Engineering (Pvt) Ltd. In the final settlement of the Rs1.4 billion transaction, IMS Engineering not only fulfilled the entire payment but also assumed additional liabilities amounting to Rs752 million owed to the Bank of Khyber.
The government, relinquishing its complete equity stake of 96.6%, celebrated the sale of HEC, a power transformer manufacturing entity owned by the State Engineering Corporation of Pakistan, with an annual designated capacity of 3,000 MVA.
Situated on approximately 62 acres of prime industrial leasehold land in the Hattar industrial estate, HEC was successfully privatized under the leadership of Privatisation Minister Fawad Hassan Fawad, who extended congratulations to all stakeholders involved in finalizing the sale agreement.
The Special Investment Facilitation Council, State Bank of Pakistan, ministries of finance and industries, along with other senior officials, were acknowledged for their contributions.
The Bank of Khyber issued a No Objection Certificate (NOC) to formalize the transaction’s conclusion. Minister Fawad highlighted that the HEC buyers plan to replace the current setup with advanced German-made machinery and equipment, aiming to meet local demand currently fulfilled through imports. He expressed optimism that the privatization of HEC would lead to increased productivity, job creation, enhanced tax revenue, and greater foreign exchange earnings for the country.
In addition, IMS Chairman Mahmood Haq shared that a comprehensive plan for optimal facility utilization was already in place, anticipating exports ranging from $250 to $300 million within the next two to three years.