PC BOARD RECOMMENDS AKFED OFFER FOR HABIB BANK LIMITED FOR CCOP APPROVAL

Islamabad, December 30, 2003

The Privatisation Commission Board which met here today under the chairmanship of Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment recommended for approval and declaring the highest bid of Rs. 22. 409 billion offered by Agha Khan Fund for Economic Development (AKFED) as successful for acquiring 51 % Strategic stake in Habib Bank Limited (HBL), the country's biggest transaction in the history of Pakistan's privatisation.

Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment while addressing the meeting said that the bidding process of HBL would boost privatisation activity in the country and it would generate tremendous interest for other upcoming transactions and would further strengthen the Privatisation Program.

Dr. Abdul Hafeez Shaikh further stated that it was the Government's endeavour to exercise maximum transparency during the privatisation process of Public Sector entities and to involve quality players from the private sector by providing a level playing field to all for improving the services through professional skills, which would ultimately benefit the consumers.

Mr. Ahmad Waqar, Secretary PC informed the Board that Pakistan's Privatisation Commission ("PC") had received unprecedented interest from around the world by receiving 19 Expression of Interest (EOI) by June 30, 2003 for the privatisation of Habib Bank Limited ("HBL"), from reputed International and Pakistani parties (participating solely, or as part of a consortium) for entering the process towards acquiring the indicated shareholding in HBL for a better competition. Six parties were pre-qualified for entering into the Data Room opened on September 8, 2003, however, only three parties conducted the due diligence of the Bank, he informed.

He further informed the Board that the CCOP had approved the transaction structure and procedure for the privatisation of Habib Bank Limited ("HBL"), for the intended sale of 51 % Strategic Stake for acquiring the management control of the Bank by the prospective pre-qualified bidders.

The bidding results of HBL privatisation alongwith PC Board and State Bank of Pakistan's recommendations would be placed before the Cabinet Committee on Privatisation, which was scheduled to meet on Wednesday December 31, 2003 under the chairmanship of Mr. Shaukat Aziz Federal Minister for Finance, he added.

The representative of Ministry of Finance and State Bank of Pakistan were also present during the meeting.