Five local investment banks and companies submitted expressions of interest to the Privatisation Commission (PC) on 9 May for the post of financial adviser on the sale of the Kot Lakhpat Works in Lahore. They are Crescent Investment Bank, Atlas Investment Bank, AMZ Securities, SM Masood & Company and Sarfraz Mahmood Management Consultants. The factory is being sold by Pakistan Engineering Company (PECO).

The PC will now issue terms of reference and will hold separate meetings. An adviser is scheduled to be appointed by mid-June and will be given four to six weeks to prepare the transaction. Bids for the sale of a 90 per cent stake in the facility are expected to be invited by the end of July. The remaining 10 per cent will be offered to PECO's employees.

The book value of the works is estimated at more than Rs 1,500 million ($33.8 million). The facility made a before-tax profit of Rs 32 million ($725,953) and made total sales of Rs 603 million ($13.7 million) in 1996/97.

The PC will also appoint a local firm to evaluate 90 acres of land owned by PECO in Badami Bagh, Lahore.