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Pak-Arab Fertilisers sell-off opposed
MULTAN (April 27
2004): The Pak-Arab Fertilisers Employees Union (CBA)
has appealed to President General Pervez Musharraf,
Prime Minister Mir Zafarullah Khan Jamali, and
Federal Finance Minister Shaukat Aziz not to
dispose of profit-oriented units on throw-away
prices.
Pakistan would lose an Arab investor and foreign
exchange of more than Rs 9,000 million by
privatising the Pak-Arab Fertilisers Factory
besides, rendering over 2,000 workers/officials
jobless and depriving the country of huge pre-tax
profit of Rs 1,750 million, said Union General
Secretary Syed Nasir Ali Shah and Hafiz Waqar
Azeem while addressing a press conference here
recently.
They said the share value of Pak-Arab Fertilisers
was assessed at Rs 257 per share by a number of
companies, but the Privatisation Commission
intends to sell its share at the rate of Rs 157
per share depriving the country of Rs 8 billion.
Explaining the details, they said the total shares
of Pak-Arab Fertilisers are 74.3 million, adding
if the government floats these shares in the
market through stock exchange, it would fetch more
than Rs 19 billion and the Arab investor would
also stay with his 48 percent share in the factory
thus Pakistan would be able to save foreign
exchange of $159 million (Rs 9,000 million)
besides, selling out a profit-oriented unit on
reasonable price.
They also demanded for taking immediate decision
on disposal of refund claim of Rs 1.75 billion
before its privatisation otherwise this huge
amount would go to the purchasing party as per
agreement, and then buyer would get another relief
of Rs 1,750 million forthwith.
Both Union leaders said this factory was
constructed on 306.5 acres (49,040 Marlas) costing
Rs 500 million @ Rs 1,000 per Marla, adding it has
a railway siding, modern plants and machinery,
building, three high schools, housing colony, two
bank buildings, hospital, play-grounds, rest
houses, furniture, fixtures and fittings, tools
and equipment, and vehicles worth Rs 144.39
million, while it manufactures fertilisers worth
Rs 7 billion per annum.
The Pak-Arab Fertilisers is meeting the
expenditures of Rs 20.336 million of NFC Institute
of Engineering and Fertilisers, Research (Pvt) Ltd
per annum, they added.
They opposed the privatisation of big
profit-oriented unit by putting the career of
2,100 employees at stake besides, creating
troubles for the farmers because the private
investor would not supply fertilisers to them on
reasonable rate and cartel of fertilisers
manufacturers would bring a disaster for them.
With the closure of Pak-Arab Fertilisers, the
country will have to import NP, CAN to meet the
local requirements after spending huge foreign
exchange, they said, adding its annual capacity of
production is ammonia 316,800 tonnes, nitiric acid
455,400 tonnes, nitrophosphate 304,500 tonnes,
calcium ammonium nitrate 450,000 tonnes, and urea
92,400 tonnes.
The Pak-Arab Fertilisers imports rock phosphate
from Jordon/Morocco, and pays huge freight to the
Shipping Corporation annually, they added.
Courtesy Business Recorder
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Pakissan.com; Advisory Point
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