HAFEEZ SHAIKH -PRESS CONFERENCE

Islamabad, February 20, 2004

Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment, while addressing a crowded press conference here today said that during the past 12 months the Privatisation Commission has realized about Rs. 42 billion through the strategic sale of certain public sector entities and the public offering of government shares in OGDCL, SSGC and other entities through Stock Market.

Refereeing to the recent Public Offering of 5 % shares of Sui Southern Gas  Company (SSGC) the Minister said that the response from the applicants for 1000 shares remained all time high to the tune of 258089 applications worth Rs. 13 billion, which was 15 time oversubscribed after the OGDCL IPO and it has also confirmed the peoples' confidence reposed in the economic policies of the Government. After exercising the Green Shoe option for another 5 % shares to accommodate maximum smaller applicants upto 67000 the government will realize an amount of Rs. 1.7 billion for total 10 % shares and for this purpose balloting to determine the successful applicants would be held on February 23, 2004 at Karachi, keeping in view the ever highest number of applicants for 1,000 shares, balloting would be restricted to only this category of applicants.

He said that the government would continue to such offerings and in this regard share of PIA scheduled to be offered in March, while shares of Pakistan Petroleum Company (PPL) were being planned in April this year for the general public to transfer the benefits of privatisation to the people of Pakistan as per the government's policy. It was no more a game of rich people, now common man could also benefit from the privatisation, he added.

Responding to a question the Minister informed that the management of Habib Bank Limited (HBL) would be transferred to the Agha Khan Fund for Economic Development (AKFED) on February 26, 2004, who gave the highest bid of Rs. 22. 409 billion for acquiring 51 % Strategic stake in HBL, the country's first ever biggest transaction in the history of Pakistan's privatisation, bidding held on December 29, 2003.