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.
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