Government of Pakistan
Privatisation Commission

THREE BIDDERS DEPOSIT EARNEST MONEY OF US$ 40 MILLION EACH FOR PTCL BIDDING ON JUNE 18, 2005

Islamabad, June 17, 2005

Three pre-qualified bidders namely Etisalat (United Arab Emirates), China Mobile (China) and SingTel (Singapore) have deposited their earnest money of US $ 40 million each with the Privatisation Commission as of June 16, 2005. By virtue of this deposit, these three bidders are now eligible to participate in the bidding for Pakistan Telecommunication Company Limited to be held on June 18, 2005. This level of interest and commitment by bidders of international repute speak volumes of the economic progress of Pakistan and investor friendly policies of the Government of Pakistan.

The Privatisation Commission is holding the bidding of Pakistan Telecommunication Company Limited (PTCL) for acquiring 26% shares of PTCL, by a strategic investor, with management control as a wholly integrated telecom operator on June 18, 2005 (Saturday) in the presence of the respective representatives of the print and the electronic media.

PTCL is the leading provider of basic telephone services to the private sector in Pakistan with over 4.4 million telephone lines in service. Besides providing fixed line and ancillary services, PTCL owns Pakistan Telecommunication Mobile Limited, one of five GSM cellular providers in Pakistan and Paknet a countrywide Internet service provider. Its strong financial position demonstrated during FY 2004 excluding subsidiaries as per unconsolidated financials of PTCL indicates: Revenue PKR 74,124 million, Operating profit: PKR: 41938 million, Net Profit after Tax: PKR:29,169 million, Total Assets: PKR: 141,595 million, Total Equity: PKR: 83,600 million, with a network of installed 5.27 million lines and 4.43 million access lines in service.

The independent regulator, Pakistan Telecommunication Authority (PTA), has liberalized and deregulated the sector to facilitate an expected increase in competition subsequent to the sale of various telecom licenses. A consortium consisting of JP Morgan and Goldman Sachs International is advising Government of Pakistan on the privatisation of PTCL. The cabinet has already given its approval for sale of PTCL as integrated entity in August 2000. The government has 88 % shares of Company and after the sale of 26 % shares the government would retain 62 % shares in the company.

 Source: http://www.privatisation.gov.pk/Handout/HO-AR-05/June-05/HO-1762005%20Three%20Bidders%20Deposit%20Earnest%20Money%20of%
20US$%2040%20Million%20Each%20for%20PTCL%20Bidding%20on%20
June%2018,%202005handout.htm