PARTIES PRE-QUALIFIED FOR DUE DILIGENCE OF PAKISTAN STEEL MILLS

Islamabad, November 22, 2005

The Privatisation Commission Board, which met here today under the chairmanship of Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment, pre-qualified eight parties for entering into the data room for the due diligence of Pakistan Steel Mills Corporation (PSMC) while three parties were conditionally pre-qualified subject to the formalities of additional information by them. The data room is expected to open in the first week of December 2005. The privatisation of PSMC is at an advanced stage.

The meeting was informed that the Privatisation Commission is inviting Expressions of Interest ("EOI") from reputed International and/or Pakistani entities (solely or as part of a consortium) for the divestment / sale of management rights of the funds under the management control of NITL, a Unique Opportunity to Acquire Management Control rights of open-ended mutual funds. The PC intends to split the Fund under management of the National Investment Trust Limited ("NITL"), the National Investment (Unit) Trust ("The Fund") into a number of parts and divest / sell the right to manage the funds. To take the Pakistan Petroleum Limited (PPL) transaction forward the PC Board formed a Committee with two PC Board members, senior representative of Balouchistan Government and the MD PPL as its members. The Board also gave approval to the criteria for the pre-qualification of prospective bidders for the strategic sale of SNGPL and SSGC and constituted pre-qualification Committees.

The meeting was informed that the successful bidder for KESC, the consortium of Hasan Associates with Al-Jomiah Group of Kingdom of Saudi Arabia has deposited US $ 100 million out of the total bid offer of Rs.20.24 billion and LOA has been issued to them while the remaining proceeds would be received by the end of the current month, followed by handing over the management control of the company to the consortium. After receiving the total proceeds of Rs.3. 204 billion from Bestway Cement Ltd for the sale of 85.29 % shares (10,507,934 shares) of Mustehkam Cement Limited (MCL) at the rate of Rs.305 per share and Rs.128 million from Mr. Mohammad Umar Memon of Sadaf Enterprises, Karachi for the machinery of Bolan Textile Mills both have been handed over to the successful buyers, the meeting was apprised.

The Secretary Privatisation Commission Mr. M. Tahsin Khan Iqbal conducted the meeting while the senior officials of the respective Ministries, departments and organizations attended the proceedings.