PC REFUTES REPORT ON Roosevelt Hotel Transaction

Islamabad, October 10, 2003

Referring to a news item released by NNI news agency carried by daily The News in its October 10, 2003 edition stating that "Roosevelt Hotel to be sold at $ 217 Million", a spokesman of Privatisation has termed the item as false, fabricated and misleading.

Clarifying the factual position regarding the Roosevelt Hotel Transaction the spokesman stated that the Privatisation Commission (PC) was not undertaking the Sale of the Roosevelt Hotel in New York.

PIAC and Prince Faisal bin Khalid are the two shareholders of PIAIL having 50% each shareholding in the company that in turn owns the Roosevelt property. The two shareholders agreed to disinvest the Roosevelt Hotel and under an Agreement the Roosevelt Task Force (RTF) was set up. PIAC and Prince Faisal nominated a four member Roosevelt Task Force (RTF). The two members from Pakistan representing PIAC were approved by the Government and consist of Maj. Gen. Muhammad Ashraf Chaudhry - Additional Secretary, Ministry of Defense and Mr. Ahmad Waqar - Secretary, Privatisation Commission.

The assignment of the RTF was to take the Roosevelt Hotel to the point of sale and to ensure that this process was undertaken in a transparent and open manner. The RTF has succeeded in its defined objective. The decision of taking the process further has to be taken by the shareholders and not by the Privatisation Commission, the spokesman concluded.