Pakistan Mobile Communications Limited (PMCL)

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MIGA has provided Orascom Telecom Holding S.A.E. (Orascom) of Egypt a guarantee for $70.9 million to cover its $88 million equity investment in Pakistan Mobile Communications Limited (PMCL). MIGA has also provided $11.7 million in coverage to Orascom's wholly-owned subsidiary, International Wireless Communications Pakistan Ltd., of Mauritius, to cover a portion of its fifteen-year services agreement with the project enterprise. The guarantees are for an initial period of five years, renewable for a maximum period of 15 years, and provide coverage against the risks of transfer restriction, expropriation, and war and civil disturbance. The government of Pakistan is focusing on the development of a more efficient telecommunications infrastructure, which would have a positive impact on general economic activity in the country. Expansion of reliable, state-of-the art mobile phone networks is seen as key to improving telecom infrastructure, and having an important multiplier effect on the growth of numerous domestic industries. This project will allow PMCL, Pakistan's largest mobile phone operator, to tap into the projected growth of the mobile phone market in Pakistan by investing an additional $200 million over the next five years. The investment will also increase usage of the Internet by integrating Internet access with cellular offerings, allowing streamlined access to real-time information and more efficient connectivity for businesses and individuals alike. The company's expansion is expected to create 420 new jobs over the next five years, with above average compensation packages, and on-going training for workers. In addition, the company will continue to provide revenues to the government through sales and income tax, royalties, interconnection agreements and license fees. These fees are expected to continue to total between $2.5 million and $3.5 million per month.

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