PRIVATISATION PROCESS CONTRIBUTING TOWARDS NEW INVESTMENT-Hafeez Shaikh

Islamabad, September 24, 2005

The Privatisation Commission Board met under the chairmanship of Dr. Abdul Hafeez Shaikh here today.

Addressing the meeting Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment said that the privatisation process was contributing towards generating new investments, job opportunities and revenues as the private sector was making expansions in the privatised entities for increase in production.

The Minister said that the privatisation process would continue as per schedule in most transparent manner and up to the satisfaction of all the stakeholders. Significant development has been noticed during the recently conducted privatisation process, which has attracted a large number of local and foreign investors, he added.

The highest offers received for Javedan and Mustehkam Cement companies were acknowledged and endorsed by the Board of Privatisation Commission.

PC received highest offer of Rs.80 per share making a total of Rs.4. 315 billion for the sale of 96.34 % shares of Javedan Cement Limited (JCL) from Haji Ghani Usman and Group while highest offer of Rs.305 per share making a total of Rs.3. 204 billion was given by Bestway Cement Ltd for the sale of 85.29 % shares (10,507,934 shares) of Mustehkam Cement Limited (MCL).

The PC Board also reviewed the bidding results for the sale of assets of Bolan Textile Mills Machinery (BTM), which got offers of Rs. 110 million from Sadaf Enterprises. The Board recommended to the CCOP to reject the offer for not being within the acceptable range and to hold re-bidding of the transaction.

The Board formed Pre-Qualification Committees for Pakistan Steel Mills Corporation and Pak American Fertilizers Limited. The matter pertaining to the pre-qualification process of prospective bidders for the privatisation of Pakistan Petroleum Limited was also reviewed.

The meeting also reviewed the implementation status of various ongoing and upcoming transactions. PC Board members, representatives of respective Ministries /departments and PC officials attended the meeting.