CCOP GIVES GO AHEAD FOR HABIB BANK PRIVATISATION PUBLIC OFFERING OF PAKISTAN PETROLEUM LIMITED & SUI SOUTHERN GAS COMPANY SHARES

Islamabad, December 26, 2003

The Cabinet Committee On Privatisation (CCOP) in its meeting held here today gave go ahead to the Privatisation Commission (PC) for the Public Offering through divestment of 5 % i.e. (33.5 million) GoP shares in Sui Southern Gas Company (SSGC) and Initial Public Offering (IPO) of GoP's 5 % (34.5 million) shares in Pakistan Petroleum Limited (PPL) through Stock Exchange. GoP holds 93.4 % shares in PPL while remaining are with IFC & others. For both offerings, CCOP approved green shoe option in case of over subscription.

The CCOP lauded the historic success of OGDCL IPO and expressed its satisfaction on surpassing the target by eight times, which has deepened, broadened and strengthened the base of the Stock Market.

The CCOP also approved the transaction structure and procedure for the privatisation of Habib Bank Limited ("HBL"), for the intended sale of a minimum stake of 26% (going up to 51 % of GoP shareholding) for acquiring the management control of the Bank by the prospective pre-qualified bidders.

The meeting was informed that the open bidding for HBL would be held on December 29, 2003 at Islamabad in PC auditorium, which will be witnessed by the representatives of the print and electronic media.

Mr. Shaukat Aziz, Federal Minister for Finance chaired the meeting, while Dr. Abdul Hafeez Shaikh, the Federal Minister for Investment & Privatisation and senior officials of the Ministries/ Divisions concerned were present in the meeting.