Bidding for Pakistan Steel Mills Expected in March-April Next Year

The bidding for the privatization of Pakistan Steel Mills Corporation (PSMC) is expected to take place in March-April next year, Federal Minister for Privatization Mohammed Mian Soomro was informed on Wednesday.

Mohammed Mian Soomro chaired a privatization progress review meeting and was briefed about the progress regarding the ongoing privatization program including Jinnah Convention Center (JCC), House Building Finance Corporation Limited (HBFCL), First Women Bank, Pakistan Steel Mills Corporation (PSMC), Pakistan Reinsurance Company, NPPMCL and others. The entities that were discussed in the meeting are included in the active privatization list, and most of them are at advanced stages of privatization.

The minister was also briefed about the matters relating to Pakistan Steel Mills Corporation (PSMC), out of eight, six interested parties/investors have submitted the statement of qualification and after the approval of the Scheme of Arrangement (SOA) with the Securities and Exchange Commission of Pakistan (SECP) the bidding is expected in March-April next year.

Further, it was briefed that the minutes of the Capital Development Authority (CDA) board meeting regarding the status of JCC are awaited to move forward.

For the sale of remaining federal government properties, the Financial Advisers’ Services Agreement (FASA) terms are being discussed with top-ranked IP. The issues related to the divestment of up to 20 percent shares of Pakistan Reinsurance Company Limited (PRCL) are being taken up with the Ministry of Commerce. PRCL and the Minister for Privatization will hold a meeting with Advisor to PM on Commerce, to discuss the matters related to the aforementioned divestment.

Soomro was also briefed about the current status of House Building Finance Corporation (HBFCL). Moreover, the board meeting of First Women Bank was held and an auditing firm has been appointed to complete the audit of three preceding years to complete the privatization.

It was also briefed in the review meeting that the reference price options for Heavy Electrical Complex (HEC) will be placed before Cabinet Committee on Privatization (CCoP), as the bidding/transaction for HEC is to be completed in the upcoming month. The RFP, regarding initiation of the process for the replacement of government of Pakistan excess equity and loan through commercial borrowing, has been finalized in consultation with stakeholders, to be initiated by NPPMCL.

The federal minister was also briefed about the transaction status of other entities including Pakistan Engineering Co. (PECO) State Life Insurance Corporation (SLIC), Sindh Engineering Limited (SEL), Guddu and Nandipur power plants.

The minister said that privatization is a major part of the current government’s economic reforms agenda, and urged to expedite the resolution of issues that might hinder the timely completion of these transactions. The minister urged to make all-out efforts to resolve the related issues so the targets could be achieved in stipulated time and also in an efficient and effective manner.

Federal Secretary Privatization and other senior officials of the ministry and Privatization Commission also attended the meeting.

Faiz Paracha is a seasoned broadcast journalist with over 15 years’ experience in reporting and e...



Get Alerts

Follow ProPakistani to get latest news and updates.


ProPakistani Community

Join the groups below to get latest news and updates.



>