POLICY

 

Aug 05 - 11, 2002

 

1.INTERNATIONAL

2. INDUSTRY

3. FINANCE

4. POLICY

5. TRADE

6. GULF

 

RS121M SALE AGREEMENTS SIGNED FOR 2 OIL MILLS

The Privatization Commission on Wednesday entered into sale agreements with two successful bidders for the sale of 100 per cent shares of E.M. Oil Mills and Industries Limited and acquisition of 61.8 per cent shares of Maqbool Company Limited.

 

The Privatization Commission had received highest offers during an open bidding for these units in April this year, of Rs94.054 million for 1,939,276 shares at Rs48.50 per share from Star Cotton Corp (Pvt) Ltd and Rs27.584 million for 270,435 shares at Rs102 per share from Madina Enterprises, making a total of Rs121.639 million for both the units.

According to a Privatization Commission announcement, the sell-off of these closed units would provide job opportunities and generate taxes for the government, after their re-opening by the successful bidders. The government has so far revived 145 units.

These units were transferred to the successful bidders free from liabilities pertaining to the government of Pakistan loans, amounts due to Ghee Corporation of Pakistan (GCP) and existing liabilities of the CBR, after approval from the PC Board and the Cabinet Committee on Privatization (CCoP).

Eight parties submitted EoIs for E.M. Oil Mills and Industries Limited, while four parties expressed their interest for Maqbool Company Limited. E.M. Oil Mills is an unlisted public limited company, 100 per cent owned by the GCP. The unit is located at a leased plot No. E-3 Estate Avenue, SITE, Karachi, measuring 4.22 acres. The lease will expire in 2052. The unit has an annual capacity of 32,000 tons. The factory possesses all necessary infrastructure facilities.

Maqbool Company Limited is a public listed company quoted on the Karachi Stock Exchange. The GCP holds 61.8 per cent, while the rest are held by general public and other institutions. The unit is located at plot No. D-5 South Avenue, SITE, Manghopir road, Karachi, measuring 3.36 acres, leased for 99 years to be expired in 2050. The unit has an annual capacity of 12,500 tonnes. It is also equipped with all necessary infrastructure facilities.

US STUDIES PAKISTAN, SAUDI N-TIES: REPORT

US officials are looking at the reports that senior Saudi officials have discussed the prospect of nuclear weapons cooperation with Pakistan, says a report published on a State Department's website.

The report, published by the department's strategic journal called the "US Foreign Policy Agenda," said although Saudi Arabia does not have nuclear weapons, it is showing interest in the technology. Saudi Arabia does not have weapons of mass destruction," says the author, a former Pentagon official Anthony Cordesman. "It did, however, buy long-range CSS-2 ballistic missiles from China. Very senior Saudi officials have held conversations with officials involved in the Pakistani nuclear programme, and possibly with similar officials in other countries."

NBP APPLIES FOR EXCHANGE COMPANY

State-run National Bank on Wednesday applied for setting up foreign exchange company by the name of NBP exchange company that would be a wholly owned subsidiary of the bank.

An NBP press release said the bank was setting up this subsidiary with an authorized capital of Rs2 billion. The release did not disclose the size of the paid up capital but an official said it would be Rs300 million.

PAKISTAN, IRAN TO EXPLORE DEFENCE COOPERATION

A high-level military delegation from Iran will be here next week to explore areas of defence cooperation with Pakistan.

Informed defence and diplomatic sources told on Thursday that the delegation headed by Iran's deputy defence minister would arrive on Monday. The Iranian officials will discuss with their Pakistani counterparts defence capabilities of both the countries to see how they could benefit from their respective expertise in the area.

BESTWAY RAISES BID

The privatization of United Bank Limited (UBL) took new turn on Thursday as the second highest bidder Abu Dhabi and Bestway Holdings Group offered to raise its bid beyond its latest written offer of Rs12.3 billion.

Official sources said that the second highest bidder was desperately seeking to have 51 per cent shares of the UBL along with the transfer of management, although the first highest bidder MCB Group has substantially raised its bid from Rs8.5 billion to Rs12 billion against the reference price of Rs11.8 billion.

EOIS FOR LC&FL SHARES INVITED

The Privatization Commission here on Thursday gave a final call to more interested parties to submit their expressions of interest (EoIs) for the acquisition of a minimum 75 per cent share of Lyallpur Chemical & Fertilizers Limited (LC&FL).

The company was established by Pakistan Industrial Development Corporation (PIDC) in 1954.

WAPDA ISSUES FIRST FUEL OIL TENDER

Pakistan's state utility, Water and Power Development Authority (Wapda), has issued a tender to import high sulphur fuel oil (HSFO) for August and September delivery, a company official said on Monday.

The tender, Wapda's first, will close on Friday and comes two years after import restrictions were lifted by the government.

The tender seeks two 55,000-ton cargoes of 3.5 per cent sulphur, 170-centistoke fuel oil for delivery into Port Qasim, one each in August and September on a cost and freight basis, the official said.