NINE MORE BESOS TRUSTS REGISTERED

Islamabad, November 19, 2009

In order to implement the Benazir Employees Stock Option Scheme (BESOS) in State Owned Enterprises (SOEs) to extend the benefits to the eligible employees free of cost for 12 % GoP shares of the privatised or non privatised entities, so far seven BESOS Trusts have been established and registered. It was informed in a meeting of the Board of Privatisation Commission (PC) held here today under the chairmanship of Mr. Iftikharul Haq, a senior PC Board member.

The new BESOS Trusts have been established in Sui Northern Gas Pipeline Limited (SNGPL), Sui Southern Gas Company (SSGC), Pakistan State Oil (PSO), Jamshoro Power Generation Company (JPGC), Pakistan National Shipping Corporation (PNSC), National Investment Trust (NIT), Heavy Electrical Complex (HEC), Pakistan Machine Tool Factory (PMTF) and National Power Construction Company (NPCC).

The meeting was informed that the scheme was launched by the Prime Minister of Pakistan who distributed unit certificates i.e. 12% GOP shares 12,924,102 to 887 employees of Heavy Mechanical Complex (HMC) on 14th August, 2009. One unit of HMC is equal to 750 shares and 20 Units are equal to 15,000 shares.

Thereafter, on 26th August, 2009, unit certificates were distributed amongst the employees of Oil & Gas Development Company Limited (OGDCL) by the Federal Minister for Privatisation and Petroleum & Natural Resources. OGDCL is the second unit where BESOS is being implemented today and About 10,576 employees of this unit will benefit from the scheme. One unit will be equivalent to 3,000 shares. The units per employee will range from 1 to 20 depending upon the length of service. The benefit to each employee will range from Rs.270,000 (1 x 3000 shares x Rs.90.00 per share) to Rs.5,400,000 (20 x 3,000 shares x Rs.90.00). Based on the dividend paid last year the employees will additionally benefit from dividends ranging from Rs.14,250 (3000 shares x Rs.4.75 per share) to Rs.285,000 (60,000 shares x Rs.4.75 per share) each.

On 1st October 2009, the Prime Minister of Pakistan distributed unit certificates amongst the employees of Pakistan Petroleum Limited. PPL was the third unit where BESOS is being implemented today and About 2,693 employees of this unit will benefit from the scheme. One unit will be equivalent to 2,566 shares. The units per employee will range from 1 to 20 depending upon the length of service. The benefit to each employee will range from Rs.484,948 (1 x 2,693 shares x Rs.188.99 per share) to Rs.9,698,967 (20 x 2,566 shares x Rs.188.99)

The meeting also reviewed the implementation status and of its earlier decisions and the progress of various on going and upcoming entities and formulated certain recommendations for the approval of the Cabinet Committee on Privatisation (CCOP).

Mr. Shahab Khawaja Secretary Privatisation Commission, PC Board members, senior representatives of the respective ministries/ departments and PC officials attended the meeting.