PC OFFERS 26% SHARES OF PAKISTAN TELECOMMUNICATION COMPANY LIMITED WITH MANAGEMENT CONTROL TO STRATEGIC INVESTORS

Islamabad, November 20, 2004

In line with the government's deregulation policy for the Telecom sector the Privatisation Commission (PC) has invited qualified strategic investors to submit their Expression of Interest (EOI) for acquiring 26% shares of Pakistan Telecommunication Company Limited (PTCL) with management control as a wholly integrated telecom operator. Upon receiving EOIs and the processing fee from the interested parties, Request for Statement of Qualification (RSOQ) will be sent immediately to them for returning RSOQ to PC latest by January 28, 2005. PC has requested the potential investors to submit their EOI at the earliest in order to get maximum time for completion of RSOQ requirements. Those who had already submitted their EOI need not to apply afresh, however, they have been asked to reiterate their interest.

PTCL is the leading provider of basic telephone services to the private sector in Pakistan with over 4.4 million telephone lines in service. Besides providing fixed line and ancillary services, PTCL owns Pakistan Telecommunication Mobile Limited, one of five GSM cellular provider (two operators yet to commence business) in Pakistan and PakNet a countrywide Internet service provider. Its strong financial position demonstrated during FY 2004 excluding subsidiaries as per unconsolidated financials of PTCL indicates: Revenue PKR 74,124 million, Operating profit: PKR: 41938 million, Net Profit after Tax: PKR:29,169, Total Assets: PKR: 141,595 million, Total Equity: PKR: 83,600 million, with a network of installed 5.27 million lines and 4.43 million access lines in service.

PC has asked the interested quality players to submit EOI alongwith information regarding Experience in Telecom Sector, International Telecom Development, involvement in the acquisition/ operation of telecom requiring system upgrading and managerial restructuring, audited financial account statements for the preceding three years and the details of the ownership structure and a non-refundable processing fee of US $ 5000 or Pak Rupees 300,000/=

The independent regulator, Pakistan Telecommunication Authority (PTA), has liberalized and deregulated the sector to facilitate an expected increase in competition subsequent to the sale of various telecom licenses. A consortium consisting of JP Morgan and Goldman Sachs International is advising Government of
Pakistan  on the privatisation of PTCL.