PRIVATISATION IS CORNERSTONE OF ECONOMIC REFORMS-says Zahid Hamid

Islamabad, July 14, 2006

Privatisation is a cornerstone of the remarkably successful economic reforms of the Government, which were introduced in 1999 and which have made a major contribution towards the excellent economic performance during the last several years. Mr. Zahid Hamid Federal Minister for Privatisation & Investment stated this while chairing a meeting of the Privatisation Commission Board here today.

The Minister said that as a result of these reforms, which also included liberalization and deregulation accompanied by transparency, good governance and consistency and continuity of the policies, overall investment had increased 20 % of GDP while foreign direct investment (FDI) had crossed $ 3.5 billion during 2005-06, which was a record and 57 entities had been privatised from 1999 to 2006 and huge amount of Rs.316 billion realized, which was utilized for debt reduction and poverty alleviation, he added.

The Minister pointed out that the President of Pakistan General Pervez Musharraf in his interview with a private television channel telecast yesterday had also highlighted the importance and benefits of privatisation and had appreciated the performance of the Privatisation Commission, which was a source of great pride for its officers and staff.

The PC Board reviewed the privatisation status of transactions relating to Pak American Fertilizers Limited, National Investment Trust Limited (NITL), Lyallpur Chemical & Fertilizers Limited and land of Services International Hotel, Lahore. The forthcoming Global Depository Receipts (GDR) and simultaneous domestic offering of Oil & Gas Development Company Limited (OGDCL) was also discussed.

The Board also reviewed the progress in the Initial Public Offering (IPO) of State Life Insurance Company shares and Secondary Public Offering of United Bank Limited (UBL) through capital market under the program, “Privatisation for the People’, which has benefited a very large number of small investors in the past.

The PC Board members and the senior officials of the respective ministries and departments were present during the meeting.