Government of Pakistan
Privatization Commission

IMF MISSION MEETS HAFEEZ SHAIKH

Islamabad, August 16, 2005

A high level delegation of IMF Mission led by Mr. Mohsin S. Khan, Director Middle East & Central Asia Department held a meeting with Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment here today.

Dr. Abdul Hafeez Shaikh briefed the delegation regarding the privatisation and the investment policies of the government and said that during the last two years the government realized Rs. 261 billion proceeds through the privatisation of 27 transactions whereas during the first three years of General Pervez Musharraf's government privatisation worth Rs.36 billion was conducted and the first 10 years of privatisation process witnessed privatisation worth Rs.60 billion, which reflected a dramatic acceleration and upward trend in the privatisation activity.

He further stated that four parties have been pre-qualified for acquiring 51% equity stake with management control in Pakistan Petroleum Limited (PPL), on an 'as is where is 'basis, one of the largest Exploration & Production companies of Pakistan operating in various production and exploration concessions in the country. The Data Room for the due diligence of PPL will be opened on August 20, 2005. While the pre-qualification of seven potential bidders for Pakistan State Oil Company Limited ("PSO") privatisation has also been done for their further participation in the privatisation process.  The privatisation of KESC, Pakistan Steel Mills, Mustehkum Cement, Javedan Cement, PECO land, NIT Mutual Fund were also among the upcoming transactions being privatised by December 31, 2005, he added.

Under the, 'Privatisation for the People' program, the benefits of privatisation have been transferred among Eight million common citizens / small investors of the country through the divestment of shares of OGDCL, PPL, UBL, SSGC, PIAC and other public sector entities through public offerings, which has broaden and strengthened the base of the Stock market and the value of these shares appreciated by Rs.30 billion, the Minister  said.

He said that the last year was best in terms growth and GDP while this year FDI crossed US $ 1.5 billion, which would be further increased in the next year. The leader of IMF Mission Mr. Mohsin S. Khan, Director Middle East & Central Asia Department while appreciating the economic performance of the country said that good growth has been noticed during past 2-3 years while ratio of investment was also increasing. Pakistan has taken a number of measures to improve the investment in the country, he remarked.

Source: http://www.privatisation.gov.pk/Handout/HO-AR-05/August-05/Handout%20August%202005.htm