PC APPOINTS LEAD MANAGER FOR IPO OF PPL

Islamabad, March 22, 2004

The Privatisation Commission ('PC') has appointed M/s. Elixir Securities Pakistan Limited as the Lead Manager for the Initial Public Offering of shares of Pakistan Petroleum Limited ('PPL') through a comprehensive and transparent process.

After receiving proposals from firms/consortia on PC's panel of Lead Managers, eight parties were declared technically pre-qualified. After opening of financial proposals in front of representatives of all eight parties, three parties namely, Elixir Securities Pakistan Limited, BMA Capital Management Limited and Global Securities Limited who had submitted the lowest bids, were short listed. Finally, balloting was carried out today i.e. March 22, 2004, in front of representatives of all three parties and M/s. Elixir Securities was declared successful.

PPL is a highly profitable company in the oil & gas sector and enjoys an excellent reputation due to its professional management. The government holds 93.36% shares in the company and presently intends to divest up to 10% shares in the company. After the successful listing of OGDCL, the listing of PPL is anxiously being awaited by the market. This listing will add an important option to the investor universe presently available to investors and is expected to add significantly to market capitalization.

Keeping in view the historic and overwhelming response to the SSGC Offer for Sale, similar response is expected for the PPL offering. This will bode well for the capital markets while giving further boost to the government's privatisation program. The most important outcome of this IPO is the expected benefit that would accrue to the general public in line with the government's slogan of "Privatisation for the People".

The Government has scheduled IPOs and secondary public offerings in a well-sequenced manner, which includes Public Offering of PIA shares and Initial Public Offering of PPL and KAPCO shares to be completed by June 30,2004.