Ministry to privatize 10 public firms

 

By Alaa Qassem

 

Azzaman, June 28, 2005

 

The Ministry of Industry and Minerals plans to privatize 10 major industries, according to Usama al-Najafi, the minister.

 

“The ministry is prepared to turn 10 of the public sector companies over to mixed or private ownership,” he said.

 

He said the companies’ Initial Public Offering will be announced soon through the Baghdad Stock Exchange.

 

The public-owned companies include “two cement factories and pharmaceutical and iron and steel firms,” the minister said.

 

If the privatization goes through it will be the first time for the pharmaceutical and cement industries to be transferred to private ownership.

 

The government owns the cream of Iraqi industry where private sector’s role is still minimal.

 

But most of the public industries are idle and have become more of a burden which the ministry is keen to shed.

 

A draft investment law under which the government was supposed to privatize most industries and some services did not see light due to heavy criticism.

 

But Najafi said another draft was being prepared and would be sent to the National Assembly, the parliament, in the near future.

 

Currently, he said, the ministry was abiding by outstanding regulations on investment and privatization and the 10 companies will be turned to the private or mixed sector, using these rules as a guideline.

 

“We have more projects to privatize once the new investment law is ratified,” he added.