INCREASING FDI TO CROSS LAST YEAR FIGURE-Hafeez

Islamabad, September 07, 2004

During the past four years FDI indicator is going up while this year it will cross the last year figure. Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment stated this during a meeting with the visiting delegation of Telenor led by its President CEO Mr. Tore Johsen, who called on him here today.  The Minister said that Pakistan has become safe haven for the investors in the region. All out efforts were being madeto  ensure maximum comfort with attractive incentives for both local and foreign investors  and level playing field was being provided to all  prospective players in all sectors, he said.

Dr. Hafeez Shaikh said that President Pervez Musharraf's continuous economic and investment policies have restored the confidence of the business groups around the globe, which was evident from 19 % FDI increase to the tune of US $ 950 million as compare to the previous year. The leader of the delegation President/ CEO Telenor Mr. Tore Johnsen who was accompanied by Mr. Stein T. Eitrheim Senior Vice President and Mr. Irfan W. Khan Vice President Regulatory Affairs informed the Minister that Telenor's Pakistani company would launch a world-class mobile service platform including multimedia services within April 1, 2005 with its headquarters in Islamabad and regional offices in Karachi and Lahore. Initially the company would provide around 100 jobs for various positions to the local people to start its operation, which would increase with expansion in its operation accordingly, he said.

He stated that Telenor would build mobile communication infrastructure in Pakistan and look forward to combining its experience in mobile technology with the local Pakistani high level of competence. Our primary aim was to offer top quality mobile services and promote healthy competition in the mobile market, he said. He further said that the company's operation would be customers focused with superior quality coverage, which was more essential and important. On April 14, 2004 Telenor acquired a nationwide GSM license in Pakistan. At present this license for mobile operation includes GSM, GPRS and EDGE. The license terms stipulate that by year 4 Telenor will cover 70 percent of Pakistan's 297 administrative Tehsil headquarters.  Telenor is ranked by the GSM Association among the 12 largest mobile operators in the world, with 34.2 million subscribers at the end of March 2004, based on 100% figures from the operations. Telenor has owner shares in mobile operations in 11 countries across Europe and Asia in addition to the license in Pakistan. The family of mobile operations benefit from economy of scale and sharing of knowledge and best practice initiatives across all the companies.