EFFORTS TO COMPLETE MORE GDRs BY JUNE 2007-ZAHID HAMID

Islamabad, January 5, 2007

Pakistan will realize US $ 811 million through the successful international offering of OGDCL 10% shares on the London Stock Exchange through Global Depository Receipts (GDR) and proposed retail offering. IPO of Habib Bank Limited (HBL) and GDRs of United Bank Limited (UBL), National Bank of Pakistan (NBP) and Kot Addu Power Company (KAPCO) and later HBL will also be offered with proper sequencing during the next few months and efforts will  be made to complete the same by the end of the current fiscal year. Mr. Zahid Hamid Federal Minister for Privatisation & Investment stated this while chairing a meeting of the Board of Privatisation Commission here today.

The PC Board constituted a 'Future Portfolio Committee' headed by the Minister/ Chairman PC with two other members of the PC Board to formulate recommendations for processing new transactions from the approved list of the Council of Common Interests (CCI).

The Board reviewed the NITL, PSO and Jamshoro Power Company transactions, which are at an advanced stage. It was also informed of the progress regarding issue of EOIs for Pakistan Machine Tool Factory, Sindh Engineering Limited, SME Bank, PTDC Motels and Hotels and for appointment of Financial Advisor for PMDC's coal and salt mines.

The PC Board was also informed that 25 % of the approved bid price of Lyallpur Chemical & Fertilizers Limited has been received within the specified time. Lyallpur Chemical fetched Rs.280.2 million highest bid and the buyer has paid 25 % of the total bid amount i.e Rs.70 million while Rs.40 million of the earnest money is also with PC. The buyer will deposit the remaining  mount before February 20, 2007. The Board also discussed the highest offer of Rs.850 million received for the sale of the land of Services International Hotel and recommended to the CCOP that after thorough review of all aspects of the transaction, fresh EOIs be invited from local and foreign investors.