PC RECEIVES 25% (Rs.335.006 million) SALE PRICE OF HAZARA PHOSPHATE & FERTILIZERS (PRIVATE) LIMITED

Islamabad, October 27, 2008

The Privatisation Commission has received 25 % sale price (i.e. Rs. 335.006 million) for the sale of Hazara Phosphate & Fertilizers Limited (HPFL) within the stipulated time from the successful bidder Pak American Fertilizers Limited (PAFL) as per terms of the Letter Of Acceptance (LoA).

Consequent to the approval by the Cabinet Committee on Privatisation (CCOP) of the highest bid of Rs.70/= per share (Total: Rs.1,340,024,490/=) and declaration of Pak American Fertilizers Limited (PAFL) as the successful bidder, LoA was issued on September 30, 2008.

The Share Purchase Agreement (SPA) shall be signed in accordance with the standard procedure on the date of receiving final payment of remaining 75 % of bid price and 50 % share of GHS/VSS of Rs.45.040/- within sixty (60) days of the issuance of LoA, which comes to November 27, 2008. The successful bidders earnest money of Rs.40 million deposited with the PC will be adjusted at the time of final payment.

Golden Handshake Scheme (GHS) and Voluntary Separation Scheme (VSS) have been offered to the permanent workers and executives of HPFL.