UNDER GHS/VSS Rs. 7.349 BILLIONS DISTRIBUTED AMONG 32,290 WORKERS OF 100 UNITS

Islamabad, April 12, 2007

In Pakistan Rs.7.349 billion have been distributed among 32,290 workers of 100 privatised units under the all Pakistan state enterprise workers' action committee (APSEWAC) agreement, which was signed on 15th October, 1991 to expedite the process of Privatisation. It was informed during the country presentation by Pakistan in the concluding session of Economic Coordination Organisation (ECO)'s 1st meeting of the High Level Experts Group (HLEG) onPrivatisation and Private Sector Development and 2nd meeting of the ECO Heads of Privatisation Administration here today.

It was informed by Mr. Muhammad Asghar Senior Financial Consultant of Privatisation Commission while briefing the delegates regarding welfare measures taken for workers by Pakistan that the package of measures for the benefit of workers of Employees have been accorded and all protection was available to them under the Labour Laws. As a special measure no retrenchment of the employees is allowed during the first twelve months. 10% of the shares of the privatised units would be offered to the employees at a mutually agreed rate.

Under this agreement 10% shares have been sold to the five units with a discount of 50% on the then market rate, which include Kohat Cement, Dandot Cement, Gribwal Cement, Ittehad Chemicals and Pak American Fertilizer. Cash profit was distributed to the employees of three privatised units in lieu of 10% shares, which include D.G Khan Cement, Mapple Leaf Cement and National Refinery Limited.

Sardar Abdul Ahad Effendi Senior Consultant Banking and Mr. Zahid Aziz Consultant Industries briefed the delegates regarding the Role of Financial Advisors in Privatisation process, Privatisation of the Banking Sector and Capital Market, Role of the government and Legal & Regulatory Framework of the Privatisation Commission.

The meeting considered devising a strategy for cross country investment and for inviting each other for tender / public notices of privatisation and decided to establish a working group comprising Republic of Azerbaijan, Islamic Republic of Iran, Islamic Republic of Pakistan, Islamic Republic of Turkey and ECO Secretariat to study the details of establishment of a website on privatisation related issues in ECO website, which would indicated linkages to websites of the privatisation administration of the member states. Member states would prepare required information and news and announcement about their respective activities in the field of privatisation and private sector development. Islamic Republic of Iran would host the working group meeting in October 2007.

The meeting reviewed the implementation of plan Action on Privatisation and decided for frequent interaction among the respective privatisation administrations for getting knowledge of structure, process and legal framework related to the privatisation. It was decided to firm up concrete proposals on activities/ programmes envisaged in the Plan of Action during the workshop on Privatisation being held in Baku on June 6-8, 2007.