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A pre-bid meeting to respond to queries of potential bidders relating to
the privatisation of Pakistan State Oil (PSO) and to create better
understanding regarding the bidding process was held here today under the
Chairmanship of Mr. Zahid Hamid, Federal Minister for Privatisation &
Investment.
Addressing the pre-bid moot, Mr. Zahid Hamid pointed out that latest figures
showed continued upsurge in foreign investment which had reached $ 6.3 billion
in the 11 months ending May 2007 which represented a 50% increase over the
corresponding period last year. He said that this investment was coming from
all over the world and in every sector including the oil and gas sector. In
this sector, there had been a revolution in the retail oil distribution
business, with increasing emphasis on service quality and modernization of
retail outlets. The sector will receive a tremendous boost with the
privatisation of PSO.
Mr. Zahid Hamid appreciated the keep interest displayed by all the
pre-qualified parties and assured them that all issues pertaining to the
transaction would be resolved expeditiously and bidding would be held in
consultation with them.
In their comments, representatives of the pre-qualified consortia unanimously
requested for fixing the bidding date after resolution of all issues so that
they had sufficient time to make arrangements to participate in the bidding.
It was agreed that PC would announce a final date shortly, keeping in view the
request of the intending bidders.
Representatives of PSO management, Ministry of Finance, Ministry of Petroleum
& Natural Resources and PC officials were present during the meeting.
The Government of Pakistan (“GoP”) holds approximately 54% stake in Pakistan
State Oil Company Limited (“PSO”) including both direct holdings of the
Federal Government and indirect holdings through GoP owned institutions. The
Privatisation Commission (“PC”), on behalf of the GoP, intends to sell a 51%
equity stake in PSO together with management control to a qualified strategic
investor. J.P. Morgan is assisting GoP as the Financial Advisor for the
privatisation of PSO.