PTCL PRIVATISATION AS INTEGRATED ENTITY WITHIN SIX MONTHS AGREED-Hafeez Shaikh

Islamabad, November 11, 2004

We must allow sale of 26 % shares with management control of Pakistan Telecommunication Company Limited (PTCL) as integrated entity enabling the company to become regional player. Dr. Abdul Hafeez Shaikh disclosed the decision of a meeting held on Monday under the chairmanship of President General Pervez Musharraf, in a crowded press conference held here today.

He said that the meeting attended by Prime Minister Shaukat Aziz, concerned cabinet Ministers, PTA Chairman, PTCL official was of the view that  unbundling of PTCL would not be cost effect even in terms of time as PTCL  market share has already reduced from 80 % to 51 % with the advent of new players in the market, which would further decrease. Fresh Advertisement  inviting Expression of Interest would be invited on 'as is where is' basis,  while the companies, which had earlier expressed their interest would remain in the run, he said.

Dr. Abdul Hafeez Shaikh added that the cabinet has already given its  approval for sale of PTCL as integrated entity in August 2000. The  government has 88 % shares of Company and after the sale of 26 % shares the  government would retain 62 % shares in the company, he said.

He informed that both the options given by PTA Chairman's Committee to  unbundled or offer PTCL as single entity were debated internally before taking this decision.

Dr. Hafeez Shaikh stated that the privatisation of PTCL could not move  ahead in the absence of a regulatory regime, which was now very much in  place and working effectively under the government's deregulation policy. He said that now our leadership the President and the Prime Minister were committed and interest was being observed and as regard to tariff regime here existed clarity in the market and in the given circumstances the consumers interest would be protected besides providing level playing field to the interested parties. Replying to a question Dr. Hafeez said that this government was pro-worker and workers interests were supreme for us and  during the past 22 months of the democratic government of President  Musharraff not even a single worker was retrenched. Workers do have fears and the government would convince them, as we have recently resolved the decade old GHS/VHS issue of the workers of National Cement Factory, Dandoot  and Suraj Ghee Mills Sheikhupura, he stated.

Mr. Owais Ahmed Leghari Federal Minister for Information Technology flanked  by his Minister of State Mr. Ali Asjad Malhi said that the decision-making slow down in the government, therefore, the government should not remain in  any such business.