GOVERNMENT FULLY COMMITTED TO PRIVATISE PUBLIC SECTOR ENTITIES WITH UTMOST TRANSPARENCY-Zahid Hamid

Islamabad, June 16, 2006

The Government is fully committed to implementation of its approved privatisation program with utmost transparency, through a fair, open and competitive process with a view to ensuring maximum sale proceeds for the assets. Mr. Zahid Hamid Federal Minister for Privatisation & Investment stated this while addressing the Board of the Privatisation Commission here today.

Addressing the meeting the Minister said that privatisation, deregulation and liberalization were part of the dynamic and highly successful economic reforms which had been initiated by then Finance Minister now Prime Minister Shaukat Aziz under the guidance of President General Pervez Musharraf and which were being widely appreciated at home and abroad. During the period October 1999 to May 2006, a huge amount of Rs.337 billion had been realized from only 58 transactions. Moreover as a result of the improvement in investment climate, Foreign Direct Investment had increased tenfold in 5 years, from US $ 322 million in 2000-01 to well over US $ 3 billion in 2005-06, the highest level in our history.

The Minister also reviewed progress of transactions relating to Initial Public Offering (IPO) and the Secondary Public Offering of the shares of various entities. The Board was informed that the government's highly successful "Privatisation for the People" program had helped in broadening, deepening and strengthening the capital market and in significantly increasing its capitalization. The number of stockholders had increased to more than a million and huge financial benefit had been passed on to ordinary small investors as a result of appreciation in share prices.

PC Board members, senior officials of the respective Ministries and the Transaction Managers, attended the meeting.