CCOP Approves Sale of Paksaudi Fertilizers to FFCL

Islamabad, March 11, 2002

The Cabinet Committee on Privatisation (CCOP) today approved the highest bid received for the sale of Paksaudi Fertilizers Limited (PSFL) to Fauji Fertilizer Company Limited Consortium for Rs.135.85 per share, which will yield proceeds of over Rupees eight billion. In this first major privatisation undertaken by the Government, the sale price was within the acceptable range of the approved reference price. CCOP members were unanimous in expressing their satisfaction with the price and in commending the Privatisation Commission on following a fair and transparent privatisation process. Earlier each of the bidders had also expressed confidence in the transparent and professional manner in which the whole privatisation process had been conducted. 

This major investment by a local company reflected investor confidence and augured well for the planned privatisation of several other major companies in the coming months. This privatisation transaction will send signals to both foreign and domestic investors that the investment climate in Pakistan was very favourable. It may be noted that top companies of the fertilizer sector participated in the bidding of Paksaudi Fertilizers Company. The Chairman CCOP advised the Privatisation Commission that in view of the directives of the President General Pervez Musharraf, the privatisation process of Habib Bank Limited may be undertaken immediately on a fast track basis after conclusion of the privatisation of United Bank Limited so as to finalise the transaction by October this year. CCOP approved the proposal of divesting 9 % GOP shares of Pakistan Oilfields Limited (POL) at market price through Central Depository Company (CDC).

The Minister for Finance Mr. Shaukat Aziz chaired the meeting, which was also attended by the Federal Ministers for Privatisation, Commerce and Industries, Petroleum and Natural Resources, Labour and Manpower, Secretary General Finance and Chairman Board of Investment and other senior officials.