HAFEEZ SHAIKH OPENS ROAD-SHOW FOR INVESTORS FOR PRIVATISATION OF SNGPL & SSGC AT SINGAPORE

Islamabad, February 13, 2006

Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment opened the first two day road show organized by the Privatisation Commission in Singapore today, which was held to brief the investors regarding the privatisation of country's largest natural gas transmission and distribution companies i.e. Sui Northern Gas Pipeline Company Limited (SNGPL) and Sui Southern Gas Company (SSGC). The two day road show will conclude on Tuesday February 14, 2006, says a dispatch received from Singapore today.

The Minister held meetings with the group of leading investors of international repute and informed them regarding the salient features of both the transactions and briefed them about the privatisation process. The investors expressed their keen interest in both the transactions with great enthusiasm. Dr. Shaikh said that Pakistan provided a level playing field for both local and foreign investors and offered unmatchable incentives for the investors in the region. The Financial Advisors for both the transaction also gave detailed presentations to the investors.

Owing to the overwhelming response for the privatisation of Sui Northern Gas Pipeline (SNGPL) and Sui Southern Gas Company (SSGC) from the prospective parties from Pakistan and abroad the Privatisation Commission (PC) had extended the last date for submission of Statement of Qualification (SOQs) for both SNGPL and SSGC to March 11, 2006. The Privatisation Commission had solicited Expression of Interest (EOIs) for the privatisation of SNGPL an SSGC on the December 14, 2005 and January 4, 2006 respectively. Earlier, the last date for submission of statement of Qualifications (SOQs) was set as February 11, 2006 for SNGPL and March 4, 2006 for SSGC. All other conditions will remain unchanged.

The Privatisation Commission invited Expression of Interest (EOI) from qualified strategic investors to divest 51% shareholding in Sui Southern Gas Company Limited (SSGC). SSGC offers significant potential for revenue and earnings growth to an investor with the resources and expertise to operate gas transmission, distribution, wholesale and retail businesses.

SSGC was formed in 1989, following a series of mergers of three pioneering companies, namely Sui Gas Transmission Company Limited, Karachi Gas Company Limited and Indus Gas Company Limited. SSGC is Pakistan's leading integrated gas company with a franchise area covering the provinces of Sindh and Balochistan serving more than 1.7 million consumers.

While Expression of Interest (EOI) were invited from qualified strategic investors to divest 51% shareholding in Sui Northern Gas Company Limited (SNGPL). SNGPL also offers significant potential for and earnings growth to an investor with the resources and expertise to operate gas transmission, distribution, wholesale and retail businesses.

SNGPL was incorporated in 1963 as a private limited company and was converted to a public company in 1964. SNGPL is the largest gas transmission and distribution company in Pakistan, with a franchise area comprising of the provinces of Punjab and North West Frontier Province (NWFP) serving more than 2.3 million consumers. The company has 41 years of experience in operation and maintenance of high-pressure gas and distribution and systems.

Another road show is being organized at London during the last week of the current month, which will be participated by investors of international repute from UK, USA, Canada and other countries. Dr. Hafeez Shaikh is also scheduled to deliver his keynote address at Institute of South Asian Studies at Singapore tomorrow.