PIA -PPL SHARES OFFER BY END APRIL & MAY-Says Hafeez Shaikh

Islamabad, April 1, 2004

The Secondary Public Offering (PO) of Pakistan International Airlines (PIA) shares and the Initial Public Offering (IPO) of Pakistan Petroleum Limited (PPL) shares should be completed by end April and May 2004. Dr. Abdul Hafeez Shaikh issued these instructions to the Privatisation Commission officials during a meeting held here today under his chairmanship.

He said that the recent IPO of OGDCL had benefited the common man since the  shares offered at a price of Rs. 32/= per share had gone up by Rs. 61/=, giving a benefit of about Rs. 6 billion to the smaller applicant. The Government was committed to transfer the fruits of privatisation to the general public and preference would be given to the smaller applicants in the up coming Capital Market Transactions of PIA, PPL, to be followed by Kot Adu Power Company (KAPCO) IPO, he said.

Dr. Hafeez Shaikh directed the PC officials not only to maintain the momentum of the present pace of privatisation of public sector entities but also to speed up the process in an aggressive manner. We might opt to limit 500 shares for the smaller applicants for ensuring and transmitting the benefits of privatisation to the large number of people in the Public Offering of PIA sharers, he added.

The meeting reviewed the status of the privatisation process of Pakarab Fertilizers Limited, Jamshoro Power Company, Faisalabad Electric Supply Company, Peshawar Electric Supply Company, Sui Northern Gas Company, Sui Southern Gas Company and other transactions.

The meeting expressed satisfaction over the transparent privatisation process of Habib Bank Limited, IPO of OGDCL shares, the Secondary Public Offering of SSGC shares, sale of Hyatt Regency Hotel a quarter century old transaction, Associated Cement Rohri, Thatta Cement Company Limited etc which had set new record in the history of Pakistan's Privatisation by generating Rs. 42 billion during the past one year.

Earlier, while reviewing the performance of Board of Investment Dr. Abdul Hafeez Shaikh directed the BOI officials to exceed the FDI target in the coming year, which had shown an increase of 65 % this year. There exited vast scope to facilitate the investors in Oil & Gas, Telecom, Banking and Textile sectors, he said.

He said that the holding of Investment Conference at Hong Kong by the end of the current month during the upcoming visit of the Prime Minister Mir Zafarullah Khan Jamali to the East Asia, Investment Moot at Quetta on May 8, 2004 and Conference at London on May 12, 2004 would not only open new avenues for the foreign and local investors but it would also accelerate the trade development activity on fast track basis.