Federal Minister for Privatization, Mohammed Mian Soomro, chaired the Privatization Commission Board meeting today in Islamabad.
The agenda of the meeting was regarding the pre-qualification criteria of investors for Pakistan Steel Mills Corp. (PSMC) revival, auction results of Services International Hotel (SIH), among others.
ALSO READ
Mari Petroleum Posts Outstanding Profit in FY 2020-21
The revival of Pakistan Steel Mills is one of the main objectives of the privatization plan, as the mills are not working since 2015. Hence the government planned to bring foreign and domestic investors for the revival of the largest industrial corporation of Pakistan.
There have been consecutive meetings with the stakeholders and Ministries to resolve the issues. According to the transaction features approved by the CCoP, the identified core operating assets would be transferred to the new subsidiary owned by PSMC named Steel Corp. (Pvt) Ltd., and then the divestment of equity stakes of the subsidiary shall be 51-74 percent through a bidding process.
In view of the decision of the Cabinet Committee, EOI for investors would be invited for the purpose of the pre-qualification of investors. The draft document containing eligibility criteria along with the basis of disqualification for the potential investors was placed before the PC Board for deliberation and approval.
ALSO READ
Pakistan-Russia Gas Pipeline Project Makes Significant Progress
The Privatization Commission (PC) Board approved the RSOQ and EOI documents. In the light of the decision of the Federal Cabinet, the Ministry of Privatization will publish the advertisement, inviting the Expression of Interest (EOI) after filing of the scheme of arrangement (SOA) by Pakistan Steel Mills (PSM) with SECP.
The PC Board also recommended the highest bidder for Service International Hotel, i.e., Faisal Town Pvt. Ltd along with offered bid which is higher than the reserved price. The letter of acceptance to the successful bidder will be issued after seeking approval of the CCoP/Cabinet.
The PC Board was also apprised that maximum efforts were made by the Financial Advisors, who reached out to maximum potential investors, but due to resource mobilization, liquidity constraints, and overall macro-economic outlook in the backdrop of the COVID-19 pandemic the response of the potential bidders appears lackluster.
The financial advisors have also informed that serious investors are reluctant to deal in public assets/property for their reasons. Ministry of Privatization widely publicized open auction of Services International Hotel (SIH) transactions in all the leading newspapers. Social and electronic media was also used for the wider circulation to make the process open and transparent.
ALSO READ
FBR Seeks More Autonomy & Less External Influence on Road to Its New Vision
Federal Minister said that we have come a long way, with a focused objective to revive the largest industrial unit of Pakistan, which could run in its best capacity and contribute to the national economy.
