PRIVATISATION FOR THE PEOPLE IS PRO-POOR & PRO_EMPLOYEES-DEAD ASSETS BEING MADE ALIVE TO GENERATE EMPLOYMENT-Hafeez Shaikh

Islamabad, July 24, 2004

We are heading forward with the slogan of 'Privatisation for the People' by divesting shares of Public sector entities and bringing life to dead units  like Kohinoor Oil Mills, AC Rohri, Hyatt Regency, Thatta Cement and  Falatti's Hotel to generate new job opportunities. Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment stated this while addressing the sale agreement signing ceremony here today. The successful bidder of  Kohi Noor Oil Mills (KOML) had deposited the bid amount of Rs. 80. 715 million within the stipulated timeframe. sale The highest offer was received in an open bidding held under the auspices of Privatisation Commission on May 4, 2004. Five parties who deposited earnest money participated in the open bidding for the privatisation of Kohinoor Oil Mills Limited (KOML) through the sale of upto 60.41 % shares (3,16,530 shares) on 'as is where is' basis.

The Minister said that the Privatisation for the People program was pro-poor  and pro-employees. He further stated that the initial and provisional results of the Initial Public Offering (IPO) of Pakistan Petroleum Limited  (PPL) have revealed that the issue has been oversubscribed, which will benefit over 200,5000 small Pakistani investors, which would raise the market capitalization to US $ 1.25 billion, currently at US $ 26 billion and it would further broaden the base of ownership, strengthen and deepen the Stock Market. A decision would be taken in the nest few weeks about the  privatisation of PTCL, he said.

He added that FDI was continuously increasing during the past consecutive  two year, which was currently 20 % above than the previous year at US $ 950 million for the year ending June 2004, which would continue to increase in the coming days.

Referring to the Government's offer for the sale of 60.41 % (3,16,530)  shares of KOML the Minister informed that Five parties who became eligible  for participating in the bidding after submitting earnest money included Petrosin Engineering Pvt Ltd, Islamabad, Canal Associates, Lahore, Mr. Iqbal Khan of Bara Ghee Mills, Bara, Kohinoor Sugar Group, Lahore, Kohisar  Enterprises, Karachi. Mr. Iqbal Khan was declared highest bidder who offered Rs. 255/- per share i.e. Rs. 80. 715 million for the offered shares. Kohinoor Sugar Group Lahore remained second with an offer of Rs. 215/= per share (Rs.79. 132 million) while Kohisar Enterprises, Karachi gave a bid of Rs.215/- per share (Rs. 68. 054) and stood third. The highest offer received for Khoinoor Oil Mills shares was above the reference price. The successful bidder has already expressed his determination to revive the unit, which had been closed since 1997. The revival of the Unit would not only generate economic activity but it would also provide employment opportunities to the people of the area. Such units would accelerate the economic growth, he said.