OGDCL IPO's HISTORIC SUCCESS BRINGS NEW LIFE- LEADERSHIP AND INCREASE IN CAPITALISATION TO CAPITAL MARKET- says Dr. Hafeez Shaikh
PC RECEIVES FOUR SOQ FOR KESC

Islamabad, December 15, 2003


The historically all time successful Initial Public Offering (IPO) of GoP shares in Oil & Gas Development Company Limited (OGDCL) has helped in broadening, deepening and strengthening of the capital market. It had also helped in significantly increasing the market capitalization of the Stock Market; Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment stated this while chairing a meeting of the Privatisation Commission (PC) Board members here today.

Dr. Abdul Hafeez Shaikh directed the concerned officials not to deviate from the schedule set for the upcoming transactions and speed up the process of Public Offering of 5 % shares in Sui Southern Gas Company (SSGC) with additional offering of 5 % through green shoe option. The IPO of Pakistan Petroleum Limited (PPL) and Kot Adu Power Company (KAPCO) should also be ensured in the first quarter of 2004, he added. The process of the appointment of Lead Managers for PPL and KAPCO is at an advanced stage.

The PC Board while reviewing the progress of Karachi Electric Supply Corporation (KESC) was informed that in response to the invitation to the investors on September 29, 2003 the Privatisation Commission ("PC") had received five Expressions of Interest ("EOI") from reputed utility operators and strategic and financial investors interested in acquiring up to 73% of the equity in Karachi Electric Supply Corporation (KESC), with management control by the due date. Four Statements of Qualification (SOQs) had been received from 1. Hasan Associates (private) Limited Consortium including Al Bayarak Al Baida Co., Kuwait; and ABB (Pvt) Ltd, USA-Pakistan, 2. Independent Power Corporation PLC and Eskom, South Africa, 3. Corner Stone Partners LLC, USA, UK and 4. Kanooz Al Watan for Project LLC, Saudi Arabia and Siemens Germany/ Pakistan. Asian Development Bank has already indicated that that they would consider taking an equity interest in KESC of 7.67 %.

The meeting was also informed that the amount received in excess of the required Rs. 6. 88 billion for the OGDCL IPO was being refunded to the applicants and necessary instructions in this regard had been issued to the Bankers concerned. Applications were invited in lots of 1000 shares or multiples thereof. Preference for allocation was given to the smaller applicants for 1000 shares. The remaining shares had been allocated to applicants on prorata basis. The prorata factor was .1504, the meeting wasinformed. The PC Board also gave approval the accounts for FY-2002-3.