ASSETS SALE AGREEMENT SIGNED FOR LASBELLA TEXTILE MILLS MACHINERY

Islamabad, November 21, 2006

The Assets Sale Agreement (ASA) was signed here today for sale of assets including plant, machinery and equipment of Lasbella Textile Mills (LTM). The Letter of Acceptance (LoA) was issued to the buyer M/s Rais Ahmed on October 20, 2006. M/s Rais Ahmed has completed the payment of Rs. 156 million. LTM is a project of Iran Pakistan Industries (Pvt) Limited (IPI) situated at Uthal, District Lasbella, Balouchistan.

The Privatisation Commission had received 43 Expression of Interest for this transaction out of which finally 16 parties reached to the bidding point.

The participants termed the bidding process as fair and transparent. It is the second transaction in the current financial year after the completion of Pak American Fertilizer, which reached the bidding point.

The machinery is part of fully integrated units of 50,000 spindles and 1100 looms with complete dyeing and finishing facilities. The plant was set up in 1976 and it started production in January 1980 but was closed down in 1983.