FOREIGN INVESTORS SHOWING GREAT INTEREST IN PAKISTANI COMPANIES - Zahid Hamid

Islamabad, October 20, 2006

The foreign investors showing great interest in Pakistani companies including banks. Mr. Zahid Hamid Federal Minister for Privatisation & Investment stated this while addressing a meeting of the Board of Privatisation Commission (BPC) here today. He said that due to the excellent performance of the economy as a result of the innovative and highly successful economic reforms introduced by Prime Minister Shaukat Aziz under the guidance of President Pervez Musharraf, which have been acknowledged by the world at large has generated exceptional investors interest in Pakistani companies including Banks.

Mr. Zahid Hamid informed the PC Board members that during the first quarter of the FY 2006-07 foreign investment including FDI and Portfolio investment had shown significant increase as compare to the corresponding period of the last FY. The remittances were also much higher than in the corresponding period last year, he stated.

He said that the consistency and continuity of the economic policies of the government had greatly increased investors confidence in the Pakistan economy and encouraged them to avail of the exciting investment opportunities through the privatisation program green field investment as well as through the stock market. The government is considering proposals for launching GDR of UBL, NBP & HBL in the international markets after the completion of ODGCL’s GDR with proper sequencing. Most of the major transactions like, PSO, NITL, FESCO, Jamshoro Power Company, PPL were at an advanced stage, the Minister added.

The board took various decisions relating to the privatisation process of various transaction. The meeting was informed that Expression of Interest (EOI) from prospective investors for the acquisition of minimum 90% shares of Heavy Electrical Complex (‘HEC’) together with management control on an `as is, where is’ basis have been invited by November 22, 2006.

The meeting was further informed that pre-bid moot for the sale of moveable and immovable assets of Services International Hotel (SIH), Lahore on “as is where is basis” has been held. According to the decision of the Cabinet Committee on Privatisation (CCOP), the Successful Buyer shall construct a five star industry standard hotel at the prime location of Shahrah-e-Quaid-e-Azam, Lahore. Six parties participated in the said meeting, which include 1. Associated Group, 2.Hashwani Hotels, 3. Marwat Enterprises, 4. Noor Financial Investment Company, 5. S.A. Builders and 6. Tristar Group.

Four parties participated in another pre-bid meeting for the sale of minimum of 90% shares of Hazara Phosphate Fertilizers Ltd (HPFL). The parties, which participated in the pre-bid meeting include 1- Al-Tuwairqi Group of Companies, Karachi, 2-Chanar Sugar Mills Limited, Lahore, 3-Regal Food Products Ltd UK facilitators: TN Associates, Islamabad and 4-WARBLE (Pvt) Limited (Allahdin Group of Companies), Lahore. The bidding of both SIH and HPFL will be held accordingly.

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