The Privatisation Commission (PC) has selected the US' Goldman Sachs to work as financial adviser on the privatisation of Pakistan Telecommunication Company (PTC), PC chairman Khawaja Mohammad Asif told MEED on 17 March.

The PC is in the process of issuing a letter of appointment to the firm, but is to request a reduction in the fee for the job, sources close to the deal say. Goldman Sachs was one of the three companies shortlisted for the transaction in early February. The other two were Union Bank of Switzerland and Credit Suisse First Boston (MEED 27:3:98).

The PC plans to offer up to a 26 per cent stake and management control to a strategic international firm, capable of bringing in management and technological expertise to enhance efficiency, services and profits. Work is expected to start by mid-April and is scheduled to be completed in six to nine months. Deutsche Morgan Grenfell was originally appointed adviser in May 1995 by the government of former prime minister Benazir Bhutto.

PTC is 88 per cent owned by the government. Just under 12 per cent of the shares are floated on the Karachi Stock Exchange. In 1996/97, it posted an after-tax profit of Rs 12,130 million ($275.6 million). Operating revenue was Rs 40,593 million ($922.4 million). It was the company's first full year of operation after a restructuring which took effect on 1 January 1996.