Dr Farogh Naseem, an advocate of the Supreme Court and analyst of the constitutional and legal affairs, has said the detailed judgement of the Supreme Court in the Steel Mills case is a clear message to international investors that there is a congenial environment for investment in Pakistan.
Speaking to a private TV channel he said the judgement of the apex court clearly held the Cabinet Committee on Privatisation responsible for selling the key asset of the nation on a throw away price.
It was not advertised prior to the bidding that the Mills had additional assets in the form of trade stocks worth Rs 10 billion and that Rs 15 billion on account of voluntary retirement scheme for those opting golden handshake is to be paid by the government, he said.
He said that it was also not revealed prior to the bidding that the management owed an amount of one billion rupees from the CBR on account of advance payment of taxes.
The judgement noted that there was no estimate of the value of land on which the Mills was located and that the Privatisation Board on the recommendation of the financial advisers had determined the price of each share of the Mills as Rs 18.44 but the Cabinet Committee on Privatisation reduced the same price to Rs 16.11 without offering any justification. He said it was a historic judgement that would set a milestone for the future governments so far as the policy of dis-investment is concerned.
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