GOVERNMENT TO COMPLETE PSO PRIVATISATION BY SET TARGET- Zahid Hamid

Islamabad, January 18, 2007

The government is fully committed and very serious to bring Pakistan State Oil (PSO) to the bidding point within the set target as we have received encouraging response. Mr. Zahid Hamid Federal Minister for Privatisation & Investment stated this during a meeting with a delegation of Kuwaiti Investors group led by Mr. Hussain Al Shammaa Managing Director Bakri Energy Marketing Systems who met him here today.

He informed Kuwaiti Group that the Data Room for the due diligence of PSO was ready and would be made available to the parties soon after the completion of pre-qualification process on the basis of the information received from the parties through their Statements of Qualification.

The Minister said that Pakistan has liberal economic and pro-investors policies and provided level playing field to all in a most fair, open and transparent manner. The government's strong political will and commitment from the top has yielded record results on the privatisation and investment fronts during the last seven years of President General Pervez Musharraf's government. Since 1991 to-date Pakistan has realized privatisation proceeds worth US $ 7 billion out of which major portion of US $ 6 billion was received during the last seven years, he said.

While briefing the delegation about the investment policy and achievements Mr. Zahid Hamid stated that Pakistan provided conducive and very attractive investment environment. All sectors of economy were open for investment and investors were free to bring in and take out as much equity they desire, he added.

He further informed that the consistency and continuity of the economic reforms and policies has brought stability in the economy, which could be evaluated from this fact that in 2000 the Foreign Direct Investment (FDI) was only US $ 320 million and in June 2006 it touched the record figure of US $ 3.5 billion and this upward trend was continuing in the first half of the current fiscal year, which would set a new record.

The leader of the delegation of Kuwaiti Investors group Mr. Hussain Al Shammaa Managing Director Bakri Energy Marketing Systems expressed his keen interest in the privatisation of PSO and wished the Minister for successful completion of the transaction. He hailed the leadership of President General Pervez Musharraf and Prime Minister Shaukat Aziz, which he said, has brought economic stability and success to Pakistan.

He informed the Minister that Bakri Energy Marketing Systems and Overseas Oil Trading company jointly being the fastest among the new Oil Marketing Companies (OMC) have 2.5 % market share and they were in the process of establishing an oil depot at Machikay besides installing more than 100 outlets in Pakistan in the first phase for which they have received necessary NOCs. Mr. Hussain Al Shammaa also informed the Minister regarding  the operations of Bakri Energy Marketing Systems in Kenya, Saudi Arabia and  Singapore.