Investment in PTCL can’t go wrong: Awais tells Gulf Bank officials
Pakistan Times Business & Commerce Desk

ISLAMABAD: Minister for Information Technology Awais Ahmad Khan Leghari Wednesday said the government would welcome friendly countries in the region to invest in PTCL for privatization within the next few months.

“We are determined to provide a level-playing field to all investors and privatization of PTCL would be ensured in a smooth and transparent manner that has been hallmark of various telecom policies and subsequent grant of licences to local and international companies,” he said in a meeting with Abdul Hameed Saeed CEO First Gulf Bank UAE and his senior colleagues currently visiting Pakistan to explore investment avenues in diversified sectors in Pakistan.

The minister invited the bank with 70 per cent of its shares owned by influential sons of Sheikha Fatima, the widow of late UAE president Sheikh Zayed Bin Sultan Al Nahyan Bin Sultan Al Nahyan, to invest in PTCL as the company had the potential to grow into a regional telecom giant following its privatization as one entity.

He informed the delegation that Pakistan’s telecom and IT sectors were growing at a tremendous pace, creating big business opportunities for local and international players. “Despite the recent boom in the sector, our tele-density in the fixed-line sector is still under four per cent which comes as a big attraction for the investors to participate in the growth likely to register in the coming years,” he added.

He said the telecom sector alone was likely to generate US$ 5-6 billion investment and thousands of jobs during the next four to five years. “I am confident that with the arrival of competition in the sector, PTCL and other companies would grow further and play a leading role in the growth of the economy,” he said.

Awais Leghari told the delegation economic growth in the telecom and IT sector had been a major contributor to improving employment in the country. “New employment opportunities result not just with the new licensees but also supporting commercial activity developing around the licensed service providers,” he said, adding opportunities for self-employment have been increasing enormously over the past few years as small entrepreneurs have started setting up multi-function communication centers and these are expected to grow rapidly as PTCL and several Local Loop operators start deploying their WLL service.

Awais said upcoming privatization of PTCL, along with several other developments, would also give a further boost to the sector. “As the process of implementation of the government’s policies picks up steam, we are in for a telecom revolution that would sweep the country during the next couple of years,” he said.

He believed the new strategic operator of PTCL would not only strengthen the company’s position as a dominant carrier, but also play its part in accelerating the growth of the competitors under the new policy. “As has been seen in many countries across the globe, the sector development is substantially boosted by the privatization of the national carrier in an open market environment,” he said.

The minister observed that one of the key benefits of an open telecom policy was that it had stimulated the drive among companies to offer new services, especially those that support growth of a knowledge economy.

Abdul Hameed Saeed appreciated the level of successes gained not only in the IT and telecom sector but in all areas of national economy reflecting on the strength and economic management of political leadership in Pakistan. He said Emirates had always enjoyed good relations with Pakistan and businessmen in his country were really looking forward to participating in the economic boom and business opportunities in the country.

Country attracts $ 515 m in seven months: Hafeez

Dr. Abdul Hafeez Shaikh, Minister for Privatization and Investment has said that the inflow of Foreign Investment during the period July to January 2005 reached US$ 515 million as compared to US$ 339.5 million during the corresponding period last year. The Foreign investment inflow of US$ 515 million during the last seven months of current financial year is 52 per cent higher than FDI level of US$ 339.5 million in the corresponding period of the last year.

Dr. Hafeez said that the substantial increase in the Foreign Direct Investment (FDI) inflows can be attributed to the good governance, improvement in policies and Pakistan’s image abroad. During this period record, increase in portfolio investment has also been witnessed, which has been US $ 92 million, thus bringing total foreign investment up to US $ 607 million.

The major leading sectors which attracted notable FDI during the period are, oil & Gas (US$ 123.2 million), Com-munications (US$ 72.1 million), Power (US$ 43.4 million), Chemicals (US$ 30 million), Trade (US$ 27.5 million), Financial Business (US$ 60.1 million) and others (US$ 158.7 million) respectively.●