OPENING OF PAK TELECOM MARKET INCREASES TELEDENSITY RATIO FROM 3% TO 15% -says Hafeez Shaikh

Islamabad, December 22, 2005

Opening up of Pakistan's Telecom market to the world has increased the teledensity ratio from 3 % to 15 %. Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment disclosed it while delivering his inaugural address on the occasion of 7th annual conference of the South Asia Network of Economic Research Institutes (SANEI) organized by Pakistan Institute of Development Economics here today.

He said that infrastructure issues were connected to the role of the government; however, the government's role should be restricted to formulate policies. Acknowledging the government role in the economy, the Minister said that in South Asia region we lack effective network and governance. It was for the economists to suggest the focus of the governments discussing, ownership, finance, regulation and management, he said.

Dr. Hafeez Shaikh further stated that we needed to pool our resources and to form think tanks to deliberate on proper utilization of public resources and to improve governance.

Welcoming the delegates Dr. A. R. Kamal Secretary Coordinate SANEI informed that SANEI headquarter has been shifted from New Delhi to Islamabad and this conference was the first of its kind in Pakistan. He remarked that inadequate infrastructure results to slow growth and the conference would focus the governance and infrastructure issues, which was being participated by Pakistan, India, Sir Lanka, Nepal and other member states.

In his keynote address Prof. T. N. Sirinivasam stressed upon the need to enhance economic relations among the member countries on bilateral basis. Potential growth of each country was under constrains due to insufficient infrastructure, he said.

Later talking to the representatives of the media Dr. Abdul Hafeez Shaikh said that the talks with Etisalat were on and good progress was being noticed whereas handing over modalities were also being discussed, which would be tabled before the Privatisation Commission Board and the Cabinet Committee on Privatisation (CCOP) for a decision. He termed the privatisation of PTCL a good signal for Pakistan's economy and replied that a team of Etisalat would soon visit Pakistan.

He further stated that efforts were being made to complete the privatisation of PSO, PPL, Pakistan Steel Mills, NITL and some fertilizers plants in the first quarter of 2006 while EOIs for the privatisation of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) have been invited. Under 'Privatisation for the People' program the government was considering for new public offerings, he added.