The Privatisation Commission announced a schedule for the privatisation of Pakistan Telecommunication Corporation (PTC) at the beginning of November. Prequalification of bidders will take place in December for a 26 per cent management stake in PTC. The aim is for PTC to become a limited company by 1 January and that management control will be handed over to a strategic investor by the end of March. The privatisation scheme was approved by cabinet in March 1994 and the original timetable called for transfer of assets to a limited company by the end of June 1995. A 10 per cent share sale took place in September 1994, leaving the state with a shareholding of just over 88 per cent (MEED 17:2:95).
Deutsche Morgan Grenfell, the financial adviser, is making presentations to major telecommunications companies and inviting bids for prequalification. Several companies are said to have already held preliminary discussions with the government in 1994. The chairman of the Privatisation Commission says that 20 groups are expected apply to prequalify.
PTC’s profits have risen in the year 1994/95. Compared with the previous year, total revenues have increased by 25 per cent to Rs 33,060 million ($967 million) and net profit has increased to Rs 16,835 million ($492 million) from Rs 16,024 million ($467 million).