PC INVITES FRESH EOI FOR PRIVATISATION OF 94.8 % SHARES OF PAK ARAB FERTILIZERS

Islamabad, July 10, 2004

The Privatisation Commission has invited fresh ‘Expression of Interest’ for the sale of 94.8 % shares of Pak Arab Fertilizers (Pvt) Limited (PAFL) from the prospective investors including fertilizer companies, industrial companies and groups who can demonstrate capability to run the company for pre-qualification, to be submitted latest by July 26, 2004. However, the prospective bidders who had already submitted their EOIs in response to earlier invitation in May 2002 and were pre-qualified need not to submit fresh EOIs.

PAFL is 52 % GoP owned private limited company (through National Fertilizers Corporation) located at Khenawal Road, Multan in the province of Punjab. International Petroleum Investment Company of UAE (IPIC) owns the balance 48 % shares. PAFL is a large fertilizer complex in Pakistan engaged in the manufacture of Calcium Ammonium Nitrate (CAN), Nitro Phosphate (NP) commonly known as compound fertilizer, besides Ammonia, Nitric Acid and Urea. The company earned a pre-tax profit of Rs. 1,116 million in 2003.

Privatisation Commission has asked the interested parties intending to participate in the privatisation process of PAFL, to submit their EOI for pre-qualification along with investors profile in terms of ownership, net worth, business track record (audited accounts, staff strength, etc.) management’s capabilities for operating similar industrial operations and a non refundable processing fee of Rupees one hundred and fifty thousand or US dollar equivalent bank draft encashable at Islamabad. Request for Statements of Qualifications (RSOQ) will be available from the office of the Privatisation Commission on payment while summary profile giving salient features of PAFL can be obtained from PC offices free of cost during office hours.