PC RECEIVES 13 EOIs FOR SALE OF MINIMUM OF 90% SHARES OF HAZARA PHOSPHATE FERTILIZERS (PRIVATE) LIMITED

Islamabad, December 10, 2007

The prospective investors have given very encouraging response by expressing interest for the acquisition of minimum of 90% shares of Hazara Phosphate Fertilizers (Private) Limited (HPFL) together with management control on ‘as is, where is’ basis. Privatisation Commission (‘PC’) has received thirteen (13) Expression of Interest (EOI) from interested parties by due date.

These parties include 1. Afzal Motors (Pvt.) Limited, Rawalpindi, 2. Akbar Brothers, Multan, 3. Farm Fertilizer (Pvt.) Limited, Lahore / Warble (Pvt.) Limited, Lahore. (However, both the parties have separately filed EOIs), 4. Grain Tech (Pvt.) Limited, Lahore, 5. ITHACA Capital (Pvt.) Limited, Karachi, 6. Ittehad Steel Group, Islamabad, 7. Khawaja Bashir Ahmad Group, Multan, 8. Kissan Chemicals & Fertilizers (Pvt.) Limited, Lahore, 9. National Steel Re-rolling Mills (Pvt.) Limited, Islamabad, 10. NH Pesticides Group International, Multan, 11. Niagara Mills (Pvt.) Limited, Faisalabad, 12. Oil Industries Pakistan (Pvt.) Limited, Karachi and 13. Pak American Fertilizer Limited, Lahore.

Expression of Interest (EOI) from interested parties have been received along with a non-refundable processing fee of Rs.100, 000/= (Rupees one hundred thousand only) for the acquisition of minimum of 90% shares of Hazara Phosphate Fertilizers (Private) Limited (HPFL) together with management control on ‘as is, where is’ basis. The parties, which have submitted EoIs are being sent Request for Statement of Qualification (RSOQ) document for response, which shall form the basis for pre-qualification. Closing date for submission of Statement of Qualification (SOQ) is December 22, 2007. Earnest money for qualification as a bidder shall be Rs.40, 000,000/= (Rupees forty million) All matters including terms and conditions relating to privatisation of HPFL shall be communicated to all qualified bidders from time to time prior to the bid date which shall form the basis for the bid.

The PC had invited EOIs from prospective investors i.e. companies or consortia engaged in manufacturing or engineering business who can demonstrate the ability to own and efficiently manage and operate the Company. The plant is located at Haripur (NWFP) – 75 km from Islamabad. The factory is situated on 57 acres of developed land and includes plant, housing and ancillary facilities.

National Fertilizer Corporation of Pakistan (Private) Limited (NFC) owns Hazara Phosphate Fertilizers (Private) Limited. HPFL is a state owned private limited company, registered under the Companies Ordinance 1984. The authorized share capital of the company is Rs.200 million divided into 20 million ordinary shares of Rs.10 each whereas the issued, subscribed and paid up capital of the company is Rs.191.143 million comprising 19.143 million ordinary shares of Rs.10 each.

The cost of Golden Hand Shake Scheme (GHS) for permanent workers based on All Pakistan State Enterprises Workers Action Committee (APSEWAC) agreement and Voluntary Separation Scheme (VSS) for the permanent executives will be shared equally between the new buyer and the Privatisation Commission. The bidder shall bid on the basis of Audited Accounts of June 2007 and may also factor in the latest un-audited accounts available prior to the bidding.

National Fertilizer Marketing Limited (NFML) is currently carrying out marketing of the product of HPFL. The Purchaser shall, however, be free to market the product using its own arrangement. The Government of Pakistan in order to encourage use of Phosphatic Fertilizers is currently providing a subsidy of Rs. 204 per bag effective from 1st July 2007. To improve the profitability of HPFL, Government of Pakistan and Government of NWFP are endeavoring to make available local phosphate rock as raw material through enabling environments for the private sector mining companies.