Pakistan says PSO set to be sold this fiscal year

KARACHI, Mar 7 (Reuters) Pakistan is on track to complete the sale of Pakistan State Oil (PSO) , the country's top oil marketing firm, in the current fiscal year ending on June 30, the government said on Wednesday.

Petroleum and Natural Resources Minister Amanullah Khan Jadoon said on a visit to New Delhi earlier on Wednesday that the government would complete the sale of PSO by the end of September.

His comment sparked a sharp fall in PSO's share price on the Karachi Stock Exchange.

PSO shares fell more than 4 percent in intraday trade but recovered to close 0.30 rupee up at 342.55 rupees.

The Privatisation Commission of Pakistan, the body overseeing the sale of government assets, said in a statement the transaction was well on track and bidding for a 51 percent stake in the firm was being targeted for within two months.

''The Privatisation Commission is currently in the process of pre-qualification of the parties for initiating due diligence of the transaction in the data room, which has already been established and is being opened soon,'' it said.

''Every effort was being made to conclude the transaction within the current fiscal year.'' The government owns a 54 percent stake in the firm.

Jadoon had said in New Delhi the transaction was at an ''advanced stage'', but he gave a different timeline.

''Fifteen companies have expressed interest and we are hoping to complete the process by the end of the third quarter,'' he told reporters on the sidelines of a regional energy conference in the Indian capital.

U.S. investment firm JP Morgan is the financial adviser for the sale.

Short-listed bidders include Abraaj Capital, Abu Dhabi Group, Al-Ghurair Investment - all from the United Arab Emirates; a consortium grouping Saudi-based Aljomaih Group and Kuwait's Noor Financial Investment; Bakri International Energy Systems, Dabbagh Group Holding of Saudi Arabia, Goldman Sachs (Asia) Finance and Vitol S.A. of Switzerland.

Pakistani firms that qualified for bidding are MCB Bank, Fauji Foundation, Attock Group of Companies and the Kohinoor Group, which is led by Kohinoor Textile.

MCB Bank will bid for PSO in partnership with Malaysian oil giant Petronas.

REUTERS SBA PM1935