NEWSPAKISTAN.TV EXCLUSIVE
KARACHI: According to sources privy to the NewsPakistan.TV – even though it is a Cabinet Committee on Investment (CCOI) decision – Port Qasim Authority (PQA), Sui Southern Gas Company (SSGC) and Ministry of Petroleum (MoP) have jointly approached the Prime Minister seeking winding-up of Pakistan Textile City Limited.
Before considering winding-up of Pakistan Textile City Limited the following facts, figures, allegations and insinuations need to be taken into account:
Pakistan Textile City Limited’s approx. 1250 acre land (at the rate of Rs. 20 million per acre) is worth (approx.) Rs. 25 billion: All the industrial plots in the Pakistan Textile City Ltd. could be sold at the rate of Rs. 20 million per acre, in no time, provided gas and water is made available. At the market rate 1250 acres of land would fetch approximately Rs. 25 billion that is many folds the loan Pakistan Textile City Limited owes to NBP.
PQA has been paid by Pakistan Textile City Limited for the 1250 acres of land and duly compensated by Sindh Government: Pakistan Textile City’s initial capital of Rs. 1.23 billion was contributed by the shareholders. The cost of approx. 1250 acres of land was fully paid to PQA out of Pakistan Textile City Limited’s own funds. Sindh Government has also compensated PQA by means of additional land allotment.
Pakistan Textile City has paid Rs. 1 Billion as interest to NBP: Pakistan Textile City Limited’s land is being developed and plots measuring from ½ acre to 5 acres have been planned. For the development of the land Pakistan Textile City had to borrow loan from NBP. From 2004-2011 Rs. 1.28 billion has been spent in the name of development. Whereas, Rs.01 billion is the mark-up that has been paid to NBP.
NBP blocked Pakistan Textile City accounts: Despite receiving Rs. 1 Billion as interest the NBP has blocked the accounts of Pakistan Textile City. NBP denied unblocking of Pakistan Textile City accounts even refusing the Ministry of Finance instructions to release Rs. 1.045 million per month to meet the office expenses etc. It may be noted that an interest of approximately Rs. 8 to 9 lakh per day is accruing against the loan. Artificial financial crisis has also been created by engineering delays. For instance, non-supply of gas approved by PM in 2006 and by SSGC in 2011.
Former Federal Textile Minister Senator Abbas Khan Afridi’s Inquiry Report on Corruption in Pakistan Textile City Limited affairs: Sources – insinuating at mass-scale corruption in the past in the Pakistan Textile City Limited affairs – have informed that (as mentioned earlier) some Rs. 01 billion has so far been spent on ‘development’. It is alleged that most of this amount – meant for development had been spent on ‘leveling and grading’ that reportedly was not carried out honestly. Moreover, reports of across-the-board enquiry conducted by Former Federal Textile Minister Senator Abbas Khan Afridi vis-à-vis alleged corruption never saw the light of day.
Pakistan Textile City’s attempt to pay back NBP debt has reportedly been sabotaged by PM Secretariat, PQA, Ministries of Textile, Finance & Petroleum: NewsPakistan.TV sources have revealed that in order to arrange finances to pay back loans to NBP, Pakistan Textile City Limited’s current Chairman Asif Maqsood (Tipu) has negotiated and convinced K-Electric to buy 200 acres of Pakistan Textile City Limited’s land for its Coal-fired power project (with a US$1 billion investment from Chinese well-reputed bank and firms). K-Electric has agreed to buy the land (without water and gas connections) from Pakistan Textile City Limited at the rate of Rs. 13 million per acre.
The deal with K-Electric could have helped Pakistan Textile City Limited pay back the loan it owes to NBP: This deal could have fetched Rs. 2.6 billion that could have been utilized to payback lion’s share of the debt payable to NBP (i.e.: Rs. 3 billion) by liability transfer (without involvement of any cash transaction at all). Sources told NewsPakistan.TV that since the deal negotiated by Asif Maqsood (Tipu) with K-Electric was of liability transfer and no cash was involved no-higher up took interest in it because there was no possibility of commissions and kickbacks. The summary was thus not entertained at all and was thrown into the dustbin.
Loss of billions of rupees caused to the exchequer: It is alleged that after taking heavy commissions in 2015 PQA diverted K-Electric 220 acres of land out of 490 acres (allotted to Riaz Lalji’s M/s. Abbas Steel in 2008). The said 490 acres of land was deemed to be cancelled by PQA due to default of payments under the allotment term. PQA price of the said 490 acres of land in October 2015 was Rs. 4.90 billion at the rate of Rs. 10 million per acre. It is alleged that on 1st of October, 2015, PQA – reportedly, in order to sabotage the aforementioned deal with K-Electric – informed in writing to Pakistan Textile City Limited that prevailing rates of Peripheral Development Charges is Rs. 10 million per acre in Eastern Industrial Zone. PQA further maintained that area of downstream extended part of land in southern side near sea was still under the ownership of PQA.
Cancellation Notice of 490 Acres of Land withdrawn illegally: PQA Chairman at that time – allegedly under the orders from Islamabad – facilitated earlier mentioned individual Riaz Lalji and withdrew the cancellation notice of 490 acres of land allotted in 2008. Despite default in due payments as per the terms of allotment withdrawal of the Cancellation Notice facilitated Riaz Lalji to sell 220 acres out of 490 acres of land at the rate of Rs. 10 million per acre. It is alleged that this transaction has caused the exchequer a loss of billions of rupees. (Certain quarters have also raised fingers at the issue of the aforementioned PQA Chairman’s appointment. It has been pointed out that the said gentleman had retired in December 2015 yet he was appointed on contract in violation of rules.)
Reportedly, the allotment of Land to M/s. Abbas Steel was against the law: It has further been alleged that in the first place allotment of 490 acres of land to M/s Abbas Steel for establishing a Rolling-Mill itself was illegal. The said land was allotted after new government took over in 2008 – at the rate of Rs. 5 million per acre. Sources close to NewsPakistan.TV held such a large piece of land was not required for a Rolling-Mill.
(As a reference, sources has quoted the instance of M/s. Al-Tauwariqi that was allotted only 200 acres of land by Government of Pakistan for setting up 1.1 million ton capacity Steel Mill. The company paid the land dues and established Tauwariqi Steel Mills in 2006.) In other such instance, the sources alleged, in June 2014 PQA has allotted 200 acres of land to Chinese Coal-Power Plant at the rate of Rs. 2.5 million per acre. Because at that time the PQA’s own rate per acre was Rs. 10 million, the said allotment had caused a loss of Rs. 1.5 billion to the exchequer.
Pakistan Textile City is an unlisted public limited company incorporated in May 2004 under the Companies Ordinance 1984. The Company has share holding of Federal Government 40%, Sindh Government 16% and nine other PSEs 44%. (The shareholding PSEs comprises of: 8% each by NBP, PQA, and 4% each by Pak-Oman Investment Company, Pakistan Kuwait Investment Company, Saudi-Pak Industrial and Agricultural Company, Pak Libya Holding Company, NIB Bank Ltd., Export Processing Zones Authority and Pakistan Industrial Development Corporation.)
