PC BOARD RECOMMENDS KESC-PAKARAB REFERENCE PRICE FOR CCOP APPROVAL-10 % SHARES OF Rs.75 MILLION GIVEN TO 1640 WORKERS ON 50 % DISCOUNT-HAFEEZ SHAIKH

Islamabad, December 22, 2004


Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment handed over 10 % (2,500,000) shares worth Rs. 26.125 million retained for the 54 employees of Ittehad Chemicals Limited who did not opt for GHS at the time of the privatisation of the unit. The shares were handed over to day prior to Privatisation Commission Board meeting to the representatives of CBA of the unit on the completion of the formalities at 50 % discount on the rate quoted on the Stock Exchange on July 23, 2004 in line with the decision of the Cabinet Committee on Privatisation (CCOP).

Addressing on this occasion the Minister said that our Privatisation Program was pro-people and pro-worker as the government was fully aware of the workers problems and was determined to give priority to safeguard their interest while privatizing the public sector units. Privatisation Commission has so far paid Rs.6.1 billion among 30,900 employees as GHS/VSS and has also resolved decade old issues of payment of GHS to the 276 workers of Suraj Ghee Mill, Sheikhupura worth Rs.22.10 million and Rs.56.658 million to 244 employees of National Cement Dandot recently.

So far, Privatisation Commission has offered 1,128,000 shares to 450 workers of Kohat Cement Limited worth Rs.40.754 million, 1,750,250 shares to 689 employees of Dandot Cement Limited worth Rs.8.226 million and 61,301 shares to 447 employees of Gharibwal Cement Limited worth Rs.0.403 million while complying CCOP decision, which would benefit 1640 employees to the tune of Rs.75.5 million in case they decide to sell these shares on market rate as they have been given these shares at 50 % discount, the Minister  added.

Later, Privatisation Commission Board meeting chaired by Dr. Abdul Hafeez  Shaikh Federal Minister for Privatisation & Investment finalized the structure of Karachi Electric Supply Company (KESC) and recommended the reference prices for the bidding of KESC and Pakarab Fertilizers Limited for the approval of CCOP. The meeting also reviewed the status and the progress  of various ongoing and upcoming transactions. PCB members, the respective Federal Secretaries and other senior officials attended the meeting.