ISLAMABAD, May 14: The Privatization Commission (PC) here on Saturday received the highest offer of Rs14.125 billion for the sale of 94.8 per cent (74,306,100) shares of Pakarab Fertilizers (Pvt) Limited (PAFL) from a Karachi based consortium — the Consortium of Reliance Export under the umbrella of Fatima Group and Arif Habib Group. Presided over by Federal Minister for Privatization and Investment, Dr Abdul Hafeez Shaikh, the bidding ceremony was held at the PC. The highest per share offer was Rs190.1.

Four parties — Consortium of Reliance Export, Dawood Hercules Chemical Limited, Consortium of Nishat Chunian and Umar Fabrics and Al-Ghurair Investment LLC, UAE - had submitted earnest money of Rs150 million each along with the required documents for participating in the bidding for the PAFL. Talking to newsmen, Mr Shaikh said the Cabinet Committee on Privatization (CCoP) will meet on May 16 (Monday) to approve the highest bid offered by the Consortium of Reliance Export. After the approval, he said, he wanted to complete the handing over and other formalities of PAFL within a couple of days.

Replying to a question he said the privatization process of the Pakistan Telecommunication Limited (PTCL) would be completed by June 30. During the privatization of 21 units before PAFL, no worker was retrenched from the service for which the government should be given credit.

The government was focused on transferring the benefits of privatization to the workers and had always tried to resolve their longstanding issues, he said.

“The privatization of PAFL in a transparent and professional way would convey positive signal to the whole world because the bidding took place in the presence of four companies and a large number of journalists from the private sector”, the minister said.

He said the privatization of dead assets like Thatta Cement, AC Rohri Cement, Kohi Noor Oil Mills, Faletti’s Hotel and Hyatt Regency Karachi Hotel Project had created new job opportunities for the people of the respective regions.

About the PAFL privatisation, he said it was the country’s largest unit in the manufacturing sector, which would enable the private sector to develop the fertilizer industry.

“It will give boost and momentum to other upcoming transactions”, Mr Shaikh said.

Arif Habib, the Chairman, Arif Habib Group, told newsmen that they wanted to expand PAFL to increase the production of fertilizer because there was a huge gap in the demand and supply of the commodity and its easy availability to the farmers.

At present the PAFL production capacity was 115,000 tons, however, the new management would attain additional 300,000 tons in the next two years, said Nawaz Ahmed Mukhtar of the Fatima Group.

Earlier, the authorised representatives of all the four eligible major groups, which had deposited Rs150 million each as earnest money, dropped their sealed bids in a transparent bid box. Some of the journalists on the request of the minister to opened the bids and read them loudly to those present at the ceremony.