Finance ministry spokesman Dr Najeeb Khaqan said the proceeds of privatisation of power plants will be the revenue of the government as the equity is owned by the PDFL
"After conducting extensive negotiations with stakeholders, including with Ministry of Water and Power, the PDFL injected money in two projects and acquired shares worth Rs64 billion, which was paid to the federal government as non-tax receipts," said Ministry of Finance.
The ministry issued this statement, which reported that the government double booked Rs64 billion of the PDFL to understate budget deficit for the fiscal year 2016-17 despite that the PDFL money had already been taken into account in previous fiscal year.
"We're thrilled that players from local and national colleges, along with other elite players, will get a chance to showcase their abilities in front of Pro Scouts,” said PDFL Commissioner Theo Hall.
PDFL football is PRO 11 on 11 football, played under NFL rules.
Now the NPPMCL has requested the government to arrange project financing of Rs70bn to pay off remaining costs of the scheme and short-term loan of PDFL
. The Ministry of Finance, therefore, decided in consultation with all stakeholders that principal amount of Rs32.738bn provided by PDFL
as short-term loan be converted into its equity stake in NPPMCL.
So far, the PDFL
has existed only on paper and the government has contracted commercial loans for financing megaprojects over the past two years instead of using this fund.
It is natural for a number of high-ranking officials to be appointed as directors but given that the bulk of a company's future capital (in case of PDFL
) will comprise contributions from the private sector, a major chunk of appointments should come from the private sector.
Moreover, four vacancies Chief Executive Officer (CEO), Company Secretary, Chief Financial Officer and the Chief Internal Auditor have also been announced for the PDFL
is registered with SECP as a public limited company to operate as a non-banking finance company to provide alternative funding sources to Public Sector Development Program projects.
During the meeting, the chair was informed that in accordance with the directive of the Board, all requisite documents had been prepared in consultation with the SECP to make the PDFL
functional and fully compliant with the Companies Ordinance 1984.
The Board agreed on nomination of Dr Waqar Masood as CEO of PDFL
as an interim arrangement.
On June 29, 2017, the ministry had changed the funding source of the both the power plants from the PSDP to Pakistan Development Fund Limited (PDFL
) in order to understate budget deficit in that year.