1. December 2015

2. Enhance service delivery to the people of Pakistan Strengthen Pakistan’s fiscal position Attract private capital, technology and management Deepen Pakistan’s capital markets 2 Objectives of Privatisation

3. Privatisation as an important economic reform policy tool, for generating growth and to expunge structural inefficiencies, by removing false barriers and opening up the economy to competition Privatisation Commission was established as a Body Corporate under the provisions of Section 3(1) of the Privatisation Commission Ordinance, 2000 The Privatisation Commission, under the PC Ordinance, is entrusted with the statutory mandate of implementing the Privatisation Policy of the Federal Government 3 Establishment of Privatisation Commission

4. 14 members of the Board belong to the corporate sector, and are amongst the best known corporate leaders of Pakistan Chairman is Mr. Mohammad Zubair, who has worked with IBM as CFO in Europe, MENA region and Pakistan for 28 years Secretary is a career civil servant with 31 years of service, and is in the rank of Secretary to the government 4 Board of Privatisation Commission

5. Strategic Sale / Public-Private Partnership Complete or partial sale of assets and business with transfer of management control Lease, Management or Concessions contracts Management or employee buyouts Capital Markets Sale of shares through public auction or tender Public offering of shares through a stock exchange Global Depositary Receipts (GDRs) Exchangeable / Convertible bonds 5 Modes of Privatisation

6. 1.Approval of Council of Common Interest (CCI) / Cabinet Committee on Privatisation (CCoP) 2.Hiring of Financial Advisor (FA) or Valuator 3.Due diligence by FA and Privatisation Commission (PC) 4.Finalization of Transaction Structure 5.Restructuring and regulatory reforms, if needed 6.Invitation of Expressions of Interest (EOI) from potential bidders 7.Submission of Statement of Qualifications (SOQs) 8.Pre-qualification of firms 9.Due diligence by potential buyers (cont'd…) 6 Privatisation Process

7. 10.Sharing of Bid Documents / Instructions with pre-qualified bidders 11.Pre-Bid Conference 12.Approval of Valuation (Reference Price) by PC Board & CCOP 13.Bidding process (media invited to observe bidding) 14.Approval of bidding results by PC Board and CCOP 15.Issuance of Letter of Intent to successful bidder 16.Finalization of Sale Agreement between PC and Buyer 17.Handing over of the entity after receipt of full payment 7 (…cont'd) Privatisation Process

8. Process of check & balance and controls is in place Every transaction goes through various forums such as:  Evaluation Committee  Transaction Committee  Board of the Privatisation Commission  Cabinet Committee on Privatisation (CCOP) Other forums taken on board at various stages, including submission of documents:  National Accountability Bureau (NAB)  Public Procurement Regulatory Authority (PPRA)  Competition Commission of Pakistan (CCP)  Public Accounts Committee / Standing Committees on Finance, Revenue, Economic Affairs, Statistics & Privatisation of the Senate and National Assembly 8 How Transparency is Ensured

9. Pakistan was one of the first countries in the region to start the privatisation process There have been some important privatisation successes in the industrial, telecom and financial sectors, since the start of this process in the early 1990s The telecom and banking sectors in particular have become major contributors to the national exchequer Between 1991 and 2013, proceeds of Rs. 476 billion (over $9 bn) were raised from 167 privatisation transactions 9 Pakistan’s Past Experience with Privatisation

10. 10 Privatisation Program Current Snapshot

11. 11 (cont'd…) CCOP Approved Privatisation Program

12. 12 (…cont'd…) CCOP Approved Privatisation Program

13. 13 (…cont'd…) CCOP Approved Privatisation Program

14. 14 * Cotton Export Corporation of Pakistan and Rice Export Corporation of Pakistan were part of the CCI-approved list of 69 entities, however, both entities have merged into the Trading Corporation of Pakistan (TCP) (…cont'd) CCOP Approved Privatisation Program

15. Raised gross proceeds of Rs. 172.9 billion so far, including over $1.1 billion in FX, from 5 completed transactions: UBL Offering (June 2014) – Rs. 38.2 billion, including $315 million in FX  First transaction after gap of 7 years. Only 7% discount, lower than average in comparable markets in the Asia-Pacific region (~12%) PPL Offering (June 2014) – Rs. 15.4 billion  First ever transaction to fetch a premium on sale of any Pakistani scrip ABL Offering (December 2014) – Rs. 14.4 billion, including $20 million in FX  Only 2.5% discount, beating Asia Region precedent benchmarks HBL Offering (April 2015) – Rs. 102.4 billion, including $764 million in FX  Largest ever equity offering in Pakistan and any Asian Frontier Market NPCC Strategic Sale (August 2015) – Rs. 2.5 billion, all in FX of $25 million  Sold after 4 unsuccessful attempts in previous governments. First strategic sale since 2008 15 Transactions Completed So Far

16. PC has received international recognition for privatisation transactions in the form of the following awards in 2014 & 2015: Award of ‘Issuer of the Year’ in 2014 given to Pakistan by IFR Asia UBL transaction given ‘Best Deal Award’ for Pakistan in 2014 by The Asset, one of Asia’s most prestigious corporate ranking journals HBL transaction given ‘Deal of the year’ award for Pakistan in 2015 by The Asset ABL transaction given ‘Deal of the year – highly commended’ award for Pakistan in 2015 by The Asset 16 International Recognition For Privatisation Transactions

17. Thank You 17