So far we have proof for...wait for it...none of them!
Really, so Shortcut never purchased a subsidized farmhouse by illegal means? The chaudhries were angels who never took out the loans, is that what you are trying to say? Who do you want to provide proof', Dogar? haha
Dear Brother,
The Graveyard business will be booming soon, I’ve heard that people in Karachi buy their grave at certain rates. ( i dont know if it is true or not) but if true then it can be considered as business.
As per my information, A body decompeses in 6-9 months, ( can be more or less) means a grave can be sold to severals after certain time period. Moreover, if we can have one or two TOMBS in the grave yard, there URS will be iceing on the cake… so u see there is money generation in this business as well, nonetheless, Commercail shops, selling petals, AGR-BATI and grave related items will be additional and regualr income.
Now if i say, who on earth will compare Steel Mill to some thing like graveyard? it is like comparing apples with oranges, one who are in business never do such mistakes and one who does it, never stays in business.
Due to certain obligation i cannot diclose the use of the land govt. allowed, just to give a hint, only the use of land would be enough to have a lucrative returns from the deal.
Really, so Shortcut never purchased a subsidized farmhouse by illegal means? The chaudhries were angels who never took out the loans, is that what you are trying to say? Who do you want to provide proof', Dogar? haha
How do I know? You brought the charges, now bring the proof.
Re: CJ stopped Mush & Shaukat from billion $ fraud
The charges will be back, once the CJ is restored, the proof is there, Shortcut is not a farmer is he, or maybe he was just preparing for the food shortage he bestowed upon us, but then again he ran away from the country so that wouldn't work as an excuse.
The charges will be back, once the CJ is restored
Spock bhaijan. Any ideas when the EX CJ is being restored? The nation cannot wait any longer, and is growing dissatisfied by govt each day? :)
Please ask your najoomi, who predicted the election results for you.
So far we have proof for...wait for it...none of them!
No case against Zardari has been proven as well, should we stop calling him "corrupt/crook"?
Re: CJ stopped Mush & Shaukat from billion $ fraud
The value of the Pakistan Steel Mills land was not more than Rs. 3,000,000 (three million) per acre in the year 2005.
Re: CJ stopped Mush & Shaukat from billion $ fraud
Tuwairqi Steel Mills Limited (a company of Al-Tuwairqi Group of Companies, The Kingdom of Saudi Arabia) plan for Karachi
The value of the Pakistan Steel Mills land was not more than Rs. 3,000,000 (three million) per acre in the year 2005.
That mean Rs 3 Million X 18,000 acres
Re: CJ stopped Mush & Shaukat from billion $ fraud
Is that really 18,000 acres which streches from the National Highway down to the Arabian Sea or just the land where actual Steel Mills is located?
No case against Zardari has been proven as well, should we stop calling him "corrupt/crook"?
Now that Altaf Bhai and Musharraf has kissed and made up with Zardari, you wont find him openly criticizing Mr. 10%
Pakistan Steel is located at a distance of 40 km Southeast of Karachi at Bin Qasim in close vicinity to Port Muhammad Bin Qasim. It was found to be an ecologically preferable location, alongside a tidal creek and having a wind direction away from the city of Karachi. Pakistan Steel is spread out over an area of 18,660 acres (about 29 square miles (75 km²)) including 10,390 acres (42 km²) for the main plant, 8,070 acres (33 km²) for the township and 200 acres (0.8 km²) for the 110 MG water reservoir. In addition it has leasehold rights over an area of 7,520 acres (30 km²) for the quarries of limestone and dolomite in the Makli and Jhimpir areas of Thatta district.
Re: CJ stopped Mush & Shaukat from billion $ fraud
29 square miles mean it inludes all the areas from the main entrance towards the end on the southern side. It inludes a lot of land which have been given to private companies such as Pak Suzuki. Our own company bought 24 acres land from Pakistan Steel in March 2005 at a cost of Rs. 2.6 m per acres.
The actual steel mills then have some 5,000 acres of land, I think.
Brother, actually land that was privatised with Steel Mill was 4500 acres. Anyhow, every thief thinks that other is thief like him and it was same with Iftikhar and those who were shouting against privatisation of Steel Mill. As you claimed that your company bought 24 acres in March 2005 at Rs 2.6 million per acres, you would understand the facts. Your company bought the land as industrial land and could use that for any industrial purpose or can sell someone anytime for any industrial use. But land on which Steel Mill is situated has fixed purpose of use, and that is for production of steels. People who were buying Steel Mill could not have shut Steel Mill and used the land for any other purpose. That means, the value of those land was even less than 2 million rupees per acre, especially when such large track of 4500 acres are sold as one unit, rather value of these lands were dependent on profitability of Steel Mill.
Nevertheless, even if we assume that the lands where Steel Mill was situated was worth around Rs2 million an acre … unrealistically high price, as likely realistic price with all conditions attached would be much lower … then also at Rs 2 million an acre, total 4500 acres that was getting privatised were worth Rs 9 billion, or $150 million at that time. *.
Steel Mill was getting privatised for around $500 million ($362 million for 75 percent stake, while government would have kept 25 percent stake worth over $120 million), that means even if land price of $150 million is taken away, plants were getting $350 million.
That price was in March 2006 and Pakistan was receiving dollars. It means that on top of what Pakistan would have got, return on the received money of $500 million over 2.7 years at around 10 percent would have been another $150 million. So, in today’s price, that $500 million privatisation would have been $650 million.
Best part is that, whoever would have paid $362 million for that Steel Mill would have made sure that Steel Mill runs in profit so that they get return on their investment. For that they would have invested more on Steel Mill plus would have given good management, increasing the profitability of the Mill. Thus, due to that privatisation, Pakistan would have gained in three ways.
A: Increased dividend on 25 percent share holding of Steel Mill.
B: Increase tax revenues from Steel Mill due to rise in profitability.
C: Stop of any resource drain from treasury to support Steel Mill.
D: Possible expansion of Steel Mill by new management so that profitability of the mill increases, that would have brought in new foreign investment as well as increase in productive jobs (no more dead logs working in steel Mill and sucking blood of Pakistani tax payers).
****Now, same Steel Mill is running at loss and instead of making any money out of it, Tax payers would have to keep paying the Mill and corrupts political management of the mill to suck their hard earned wealth. No wonder, thugs and corrupts who live sucking blood of Pakistani poor did not liked era of President Musharraf and are today happy with thugs in power again:
Please read the recent report that Brother Faisal posted on Steel Mill:
Business Recorder [Pakistan’s First Financial Daily]
Pakistan Steel facing worst financial crunch**]**
Here is what happened during privatisation. It would show that initially, bid was at much lower value (Rs 10.17 per share), but subsequent open bidding increased the final bid to around Rs 16.80 per share valuing the company at around $500 million. [Note: Total value for 75 percent shares was valued at $362 million]. The detail also shows that total land that was included in privatisation was 4500 acres.
Pakistan Steel Mills Corporation (PSMC) Receives Highest Offer of Rs.21.680
PAKISTAN STEEL MILLS CORPORATION (PSMC) RECEIVES HIGHEST OFFER OF Rs.21.680 BILLION FOR 75 % SHARES
Islamabad, March 31, 2006
The final round of bidding for a 75% strategic Stake (1,290,487,275 shares) of Pakistan Steel Mills Corporation (PSMC) fetched the highest offer of Rs.16.80 per share making a total of Rs.21.680 billion i.e equivalent to US $ 362 million offered by Consortium of Magnitogorsk Iron & Steel Works (Russia), Tuwairqi Steel Mills (Saudi Arabia) and Arif Habib Securities. The bidding was held here today under the chairmanship of Mr. Awais Ahmed Khan Leghari Federal Minister for Privatisation & Investment and Information Technology while Mr. Jehangir Khan Tareen Federal Minister for Industries, Production & Special Initiatives witnessed the proceedings.
Earlier, both the bidder consortiums who became eligible for participating in the bidding after depositing earnest money of US $ 30 million each within the stipulated time dropped their sealed bids in front of the large number of the representatives of print and electronic media. The bids were opened and read out by two senior journalists during the first round. The Consortium of Magnitogorsk Iron & Steel Works (Russia), TuwairqiSteel Mills (Saudi Arabia) and Arif Habib Securities gave offer of Rs.11.67 per share amounting to Rs.15.059 billion while the offer of the Consortium of Noor Financial (Kuwait), Industrial Union of Donbass (Ukraine), Government of Ras Al Khaimah and Al-Jomaih Holdings (Saudi Arabia) was Rs.10.17 per share with a total of Rs.13.124 billion.
During the second open bidding round bidders were asked for a minimum raise of paisa 25 to improve their offer. This round created a competitive and transparent atmosphere, which generated interest among the participants and the audience.
Addressing on this occasion Mr. Awais Ahmed Khan Leghari Federal Minister for Privatisation & Investment and Information Technology said that the Cabinet Committee on Privatisation has authorised Privatisation Commission to issue Letter of Acceptance (LOA) to the successful bidder Consortium of Magnitogorsk Iron & Steel Works (Russia), TuwairqiSteel Mills (Saudi Arabia) and Arif Habib Securities whose offer was within the acceptable range. As per payment schedule the successful Consortium would deposit 25 % of the total bid offer within next 20 days and remaining amount of the total offer within 60 days after the issuance of LOA, which was to be issued to today, he said.
Mr. Awais Ahmed Khan Leghari further stated that the bidding, which took place in a very transparent way in front of the media, has determined the value of Pakistan Steel Mills 100 assets to US $ 482 million. Out of 19000 acres of the land of PSMC around 14500 acres worth about US $ 800 million has been separated from the transaction, which would be used by the government for appropriate project, he added.
[This shows that total land privatised were 19000 minus 14500 = 4500 acres]
He also informed that an agreement has been reached with the employees and they were being offered a package, which he said was never given to the employees of any other entity. Today’s bidding was a great success of the present political and democratic government, he stated.
Mr. Jahangir Khan Tareen Federal Minister for Industries, Production & Special Initiatives said that the handing over of PSMC to the private sector would attract fresh investment to modernize the Mill and to turn it as world-class player. He termed the bidding process as transparent and fair.
Later the representatives of both the Consortiums termed the bidding process as satisfactory, open and very transparent and appreciated the efforts of the Privatisation Commission for conducting the transaction in a smooth manner. Mr. M. Tahsin Khan Iqbal Secretary Privatisation Commission conducted the bidding process. The Privatisation Commission Secretariat has issued the LOA today.
Nine parties had been pre-qualified out of which 8 conducted active due diligence. Out of these five parties attended the pre-bid meeting. The pre-qualified parties completed their due diligence of the transaction including plant visits and physical / virtual data room. Six pre- qualified parties joined to form two strong bidding consortiums. PSMC is the country’s largest and only integrated steel manufacturing plant, with an annual designed production capacity of 1.1 million tonnes. It was incorporated as a private limited company in 1968 and commenced full-scale commercial operations in 1984. PSMC complex includes coke oven batteries, a sintering plant, blast furnaces, steel converters, bloom and slab casters, billet mill, hot and cold rolling mills, galvanizing unit and 165 MW of own power generation units, supported by various other ancillary units. It is located 40 km south east of the coastal city of Karachi, in close proximity to Port Bin Qasim, with access to a dedicated jetty, which facilitates import of raw materials, PSMC manufactures a wide mix of products, which includes both flat and long products, PSMC effectively enjoys a captive domestic market due to the prevalent demand-supply imbalance in the country’s steel industry, where demand has historically exceeded local supply.*