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Inter-ministerial meeting on off-loading shares today

  • Published at 08:55 am July 26th, 2017
Inter-ministerial meeting on off-loading shares today
Bank and Financial Institutions Division has called an inter-ministerial meeting today to discuss bureaucratic hurdles towards off-loading shares of 26 state-owned companies in the stock market. The government has failed to off-load shares of these enterprises in the stock market during the past seven years allegedly due to non-cooperation of the relevant ministries and bureaucratic tangles. Finance Minister AMA Muhith will preside over the meeting. Bank Division Secretary Md Yunusur Rahman and representatives of the companies will also be present in the meeting. An official at the Bank Division said despite repeated calls from finance minister, the state-owned companies were unwilling to off-load their shares into the capital market. He said the heads of the companies were even warned that they would have to leave the office if they failed to off-load shares by the stipulated times. Most of the gas distribution companies under the Power and Energy Ministry said they would not off-load shares in the local stock market unless the discovery of new gas reserve and increase the existing gas production. Most of gas distribution companies told the Financial Institutions Division that due to shortage of the gas, the government stopped supply of gas to CNG filling stations, residential houses and commercial institutions, the official said. According to the Bank Division sources, only Bangladesh gas field company is willing to off-load shares in the stock market and it has already communicated with ICB capital management company. Shares of the Sheraton Hotel Dhaka will be off-loaded after completion of the renovation of the hotel and then it will be re-banded. Besides, shares of the Pan Pacific Sonargaon Dhaka will off-load shares in the local stock market after completion of its renovation work of Tk450 crore under civil aviation and tourism ministry. The government has been able to off-load shares of only the Bangladesh Submarine Cable Company Ltd during the last six years. Saudi Arabian firm Al-Rajhi company for industry and trade and NBR Energy Ltd will renovate Chattak Cermet factory under industries ministry, then it share will be off-loaded. A total of 10% stocks of the Biman Bangladesh Airlines Limited would be off-loaded if the company made profit in the FY2016-17. Similarly, Teletalk shares will be off-loaded if it becomes profitable. Also, the health ministry is not eager to off-load shares of the Essential Drugs Company Limited. Before that the additional shares of the Meghna Petroleum, Titas Gas and Jamuna Oil Company were off-loaded in the stock market. Officials said the shares of the Northwestern Power Generation Company, Power Grid Company of Bangladesh, Electricity Generation Company of Bangladesh and Ashuganj Power Generation Company could not be off-loaded due to “various reasons.” In 2010, the government asked the authorities of the 26 state-owned companies to off-load their shares into the stock market.