FOUR MORE MAJOR PLAYERS EXPRESS INTEREST FOR PTCL PRIVATISATION- LAST DATE FOR EOI JANUARY 28-Hafeez Shaikh

Islamabad, January 10, 2005

After a final decision to privatise Pakistan Telecommunication Company Limited (PTCL) as a single entity the Privatisation Commission has received interest from four more major international parties, which is expected to increase, as the last date for submission of Expression of Interest (EOI) is January 28, 2005.

Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment stated this while talking to media representatives after chairing The Mahbub ul Haq Memorial Lecture session of 20th Annual Conference organized by Pakistan Society of Development Economists here today.

Replying to a question Dr. Abdul Hafeez Shaikh termed year 2004 as most successful. He said that after the general elections the Privatisation Commission generated Rs.50 billion through 18 transactions within a period of two years while the earlier three years of General Pervez Musharraf government the proceeds stood at Rs.36 billion whereas since, the inception of Privatisation Commission over ten years the proceeds were Rs.60 billion, which shows average increase per annum.

He further stated that in order to transfer the benefits of privatisation to the common man 400,000 new share holders were given benefit of Rs.20 billion due to increase in shares value of public sector entities. We would maintain this momentum and it would be further accelerated in the year 2005, he said.

Dr. Hafeez Shaikh said that during the last week of current month 20 % shares of Kot Adu Power Company (KAPCO) would be given to the general public at the rate of Rs.30 per share through Initial Public Offering (IPO) to the applicants for 500 shares only for Rs.15000/=. The Cabinet Committee on Privatisation (CCOP) has also approved the public offerings of United Bank Limited, Pakistan steel Mills, State Life Insurance Company and the secondary public offering of OGDCL shares in a sequenced manner, which would further broaden and strengthen the base of Stock Market, he added.

He said that simultaneously the strategic sale of public sector entities would also continue. Pakarab Fertilizers Limited and Karachi Electric Supply Company (KESC) have already reached near the bidding point, he disclosed.

Earlier, paying tribute to Dr. Mahbub ul Haq, the Minister said that he was a visionary, best economist, man of ideas, one of the best minds this country produced. Prof. M. Ali Khan of Johns Hopkins University Baltimore USA read his detailed paper 'On Hayek's Road to Serfdom: Sixty Years later', which was followed by Q & A session.