The Cabinet Committee on Privatization (CCOP) decided on Friday to offer the Pakistan Steel Mills (PSM), along with all its assets and liabilities, to the Sindh government, which had conveyed its interest to acquire the organisation.
The committee approved the transaction structure for the only integrated steel plant of the country with a production capacity of 1.1 million tons per year, expandable up to 3m tons. The PSM, set up in 1984, has a workforce of 15,274 and comprises 20 industrial units.
The Privatisation Commission Board had approved the transaction structure on Thursday and financial advisers have already been appointed.
The commission held road shows in China last week for privatisation of the PSM, signalling the government’s intention to explore Chinese interest if the deal is not struck with Sindh.
According to sources, the Privatisation Commission will send an offer letter to the Sindh government.
The commission’s Chairman, Muhammad Zubair, left for Karachi on Friday and is expected to meet Sindh government officials to discuss issues related to the PSM. He is likely to emphasise that the objective is to improve efficiency and profitability.
Last week, the Economic Coordination Committee approved Rs960m for the PSM to enable it to pay two months’ salary to employees. The PSM was unable to pay the wages because of ongoing losses.
ELECTRIC COMPANY: The CCOP, in its meeting chaired by Finance Minister Ishaq Dar, also approved the transaction structure for the Faisalabad Electric Supply Company (Fesco), providing for 74 per cent equity sale.
The transaction structure had been presented to the CCOP last month and after considering the recommendations of the Privatization Commission it had formed a committee to examine the proposal related to valuation of assets. The committee submitted its recommendations and CCOP approved the transaction structure.
