Govt to offload shares of 26 SoEs by June

The government will offload shares of 26 state-owned enterprises (SoEs) by June this year as the finance ministry yesterday informed a Dhaka Stock Exchange (DSE) delegation of the progress in this regard.
The progress in the government’s previous plan was apprised when a delegation of the new DSE executive committee, led by its president Md Shakil Risvi, called on Finance Minister AMA Muhith at the ministry. 
The delegation was also informed that measures to offload more shares of the SoEs already in the capital market would also be considered.
Securities and Exchange Commission (SEC) chairman Ziaul Haque Khandaker and acting secretary of the Banking and Financial Institutions Division Md Shafiqur Rahman Patwari and immediate past DSE president Md Rakibur Rahman were present at the meeting.
Banking Division secretary Shafiqur Rahman Patwari apprised the meeting of the progress in the government plan at the finance ministry, amid demands from the DSE leaders as a strategy to avert possible price bubble.
He said the shares of the 26 SoEs would be offloaded in phases during the April-June period.
“May be, it won’t be possible to offload all the shares within the stipulated timeframe. Offloading of few shares can be delayed, but we’ll continue to pursue,” Finance Minister Muhith told reporters replying to a question.
Amid criticism from the former DSE president Rakibur Rahman, Muhith recognised that the process of divestment of the government shares was delayed due to reluctance of the top officials of the companies. “I’ll not disown that there is reluctance.”
The Finance Minister requested the new committee of the country’s premier bourse to protect the interests of the general investors.
“We need to increase investment in achieving our goal of boosting economic growth… we need your (capital market) contribution in this regard,” he said.
Replying to a question, he said the VAT and Customs Acts are in the process of reform while reform to the Income Tax Ordinance would be undertaken next year.
Addressing the meeting, DSE president Shakil Rizvi assured the meeting of playing their due role to help develop a healthy capital market. He urged the Minister to facilitate bringing investment from non-resident Bangladeshis through removing the bottlenecks.
Immediate past DSE president Rakibur Rahman urged the Minister to transfer the top officials of the 26 companies to facilitate offloading of the shares.
He said there is no alternative to offload shares of the companies to deepen the market. “In case of any failure, there will be a price bubble, which cannot be controlled.”  
SEC chairman Ziaul Haque Khandaker stressed the need for consolidating the achievements made so far through ensuring transparency in the activities of all the stakeholders. He also emphasized on taking good initiatives through consultation with the stakeholders concerned.
 
Courtesy of The Independent