June 6, 2002	Thursday	Rabi-ul-Awwal 24,1423

ISLAMABAD, June 5: The Privatization Commission is finalizing an advisory services contract to be signed with Merrill Lynch for the sale of 51 per cent shares in Pakistan Petroleum Ltd (PPL) within a 12-month schedule.

A Privatization Commission statement said the government intended to ensure that fair proceeds from the privatization were obtained no matter when the privatization occurred.

The government decision to increase PPL well-head price gradually over five years meant that transaction has to be carefully structured to ensure that the sale proceeds were not adversely affected which would require more work.

The statement said that to ensure full government commitment to the privatization before disbursing funds to the financial adviser, the Privatization Commission was finalizing a financial advisory contract that would become effective after the transaction structure was approved.

Under the proposed arrangement, the financial adviser would carry out preliminary work on the range of options for a transaction structure that was suitable for PPL and was in the national interest.

Elaborating benefits of privatization of PPL, the statement said that besides the sale proceeds utilization for debt retirement and poverty alleviation, the PPL sale would ensure adequate investment funds to increase gas production.

The government would continue holding 42 per cent shares in PPL and benefit from increased dividends, the statement added.