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Govt will soon invite EoIs for sale of PTCL minority shares

TAHIR DHINDSA

ISLAMABAD: The Government will soon invite expression of interest for (EoIs) the sale of minority shares of Pakistan Telecommunication Company Limited (PTCL), along with management transfer, Dr Akram Sheikh, secretary communication said on Tuesday.

He told reporters that although PTCL's monopoly will continue till December 31, 2002, the government will offload 25 to 35 percent shares to the strategic investor during the year 2000 so that the new partner would have 12 to 18 months to prepare for the open competition in year 2003.

He said, the government will keep about 70 per cent shares in public sector which it hopes will also grow after the new strategic investor will improve company's overall portfolio. "This is the basic reason that the government is willing to transfer management to the new investor with the sale of as little as 30 per cent shares. He said, the balance shares of the PTCL would automatically be appreciated as the new management would work hard for its own minority shares.

This will increase shareholder's dividend and maintain government's income, which at present is about $ 300 million.

Informing that the cellular telephone of PTCL will be launched soon he criticised previous government for dolling out mobile phone licenses without any fee. He gave example of Morocco, a small population base country, where the government took $ 1.5 billion as fee for setting up mobile utility services by a private party.

Secretary communication promised that long distance call tariffs would be rationalised by further lowering the rate whereas the local call tariffs would be rationalised by making upward adjustments. "The local call tariffs are lowest in the region," he concluded.