The Privatisation Commission (PC) and Etisalat Communication of UAE signed agreement for transfer of management of Pakistan Telecommunication Company and its 26 percent share here on Sunday.
PC Secretary Tehseen Iqbal Khan and Etisalat Chairman Muhammad Imran signed the agreement. Prime Minister Shaukat Aziz along with Etesalat Chief Executive Hassan Imran and various cabinet members also witnessed the signing ceremony.
Under the agreement, the Etisalat will pay $1.4 billion to the Government of Pakistan during the next four weeks, and will take over the administration of the PTCL. The remaining amount of $1.9 billion will be paid in nine equal six-monthly installments.
Etisalat was the highest bidder for 26 percent shares of PTCL with management and they offered $2.598 billion on June 18, 2005.
Talking to newsmen on the occasion, Prime Minister Shaukat Aziz described the agreement as a defining moment in the privatisation process as it is the largest transaction in country's history.
"Today's transaction signifies a quantum leap in the economic relationship between the two countries," he said.
He said this transaction shows the interest of foreign investors in Pakistan's future particularly in the telecom sector. He hoped that Etisalat with its management will turn around PTCL in a greater valuable asset and would increase its value through innovation, expertise and sharing best practices.
Shaukat Aziz said: "This transaction is also a manifestation of close co-operation between the two brotherly countries of Pakistan and UAE and it will bring our ties even more closer."
He said: "We have created win-win situation for stakeholders", and hoped that PTCL under the Etisalat management will turn into an excellent entity and will be a source to attract more investors in IT and telecom sectors in Pakistan.
He said this will also help further expanding telecommunication system to meet the growing demand of the people in this sector.
"Now it is up to the management of Etisalat to develop the PTCL franchise, to use Pakistan as a outsourcing venue so people here can help improve the possibilities of Etisalat globally, not just in Pakistan."
Referring to the difficulties the deal faced last year, he said: "The end result is good for PTCL, it's good for Etisalat, it's good for shareholders of both companies and good for the people of Pakistan and the UAE."
Speaking on the occasion Etesalat Chief Executive Hassan Imran expressed his commitment to achieving their target with dedication and hard work and make the PTCL a more vibrant organization. He hoped that it will become a new source of co-operation between the peoples and governments of both countries.
To a question, he said the PTCL staff is main asset to the organization and there will be no retrenchment in the new setup. He said: "We need best human resource and Pakistan is a rich country in this regard."
Privatisation Minister Dr Abdul Hafeez Sheikh said that the company would pay $1.4 billion very soon, while the remaining amount of $1.2 billion would be paid in instalments.
He said it was an important and historic day in Privatisation Commission and for Pakistan, as well as for UAE.
He said in the last three years, the Privatisation Commission had raised Rs 285 billion from the privatisation process, and expressed hope that the process would continue in future.
Hafeez Sheikh said the sale deal of 26 per cent shares of PTCL would cement relations between Pakistan and UAE.