PAKISTAN TO ASSIST SAUDI ARABIA IN NEW RAILWAY SETUP-Says Hafeez Shaikh

Islamabad, December 07, 2003

Pakistan offers attractive investment opportunities with the consistency,  continuity and implementation of stable and liberal economic policies ensuring comfortable and conducive atmosphere for foreign and domestic investors. Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation and Investment made these remarks while inaugurating Saudi Arabia 2003: International Exhibition being held at Dhahran Saudi Arabia under the auspices of the E-Commerce Gateway (Pvt) Singapore, says a message received here today from Jeddah.

He said that the second International Exhibition (a Pakistani Brand Exhibition) of Information Technology Commerce Network (ITCN) was being held with an objective to highlight Pakistan's I.T potential in the Middle East and to bring closer operation between the two brotherly countries. Having deep rooted and long association with the Kingdom of Saudi Arabia there existed vast scope between the private sector of both the countries to accelerate the pace of business interaction and to enhance and strengthen economic relations between the two sides.

A large number of Saudi investors, 95 Pakistani delegates and 22 companies are attending the second International Exhibition (a Pakistani Brand Exhibition) of Information Technology Commerce Network (ITCN) at Dahran.

Dr. Hafeez Shaikh said that under the dynamic leadership of President General Pervez Musharraf and the Prime Minister Mir Zafarullah Khan Jamali the government has realized record proceeds in the first year of the government through the privatisation of public sector entities amounting to Rupees 17 billion plus, which was a record. Out of this Rs. 14 billion were received through off loading the Government shares in the public sector entities to the general public for broadening and deepening the base of the Stock Market and transferring the benefits of privatisation to the common man through Initial Public Offering of Shares of entities like OGDCL and the heavy response from investors gave a clear indication of the excess liquidity available. The Minister further said that the listing of OGDCL had increased market capitalization by more than Rs. 170 billion, which translates to about US$ 3 billion. The investor response had clearly indicated the market appetite for good investment opportunities and bodes well for future offers for sale of high performance companies, he added.

Dr. Hafeez Shaikh said tht it was the basic desire of the government to  make the people of Pakistan the real owners of mega entities and for this purpose after OGDCL IPO the IPO of PPL and KAPCO would soon be offered. All out efforts were being made to accelerate the pace of privatisation process of all the ongoing and upcoming entities, he stated.

The Minister during his meeting with the President of Saudi Railway discussed the possibilities for participation of Pakistani companies in the expansion and laying of new railway tracks in Saudi Arabia. The matter regarding accelerating the process for the establishment of a Steel Mill in Pakistan was also discussed with the Altavair Group. The representatives of leading Saudi media conducting separate interviews with the Minister.