The Government of Pakistan has received an offer of $ 1-1.5 billion for the purchase of majority stakes in Pakistan Steel Mills (PSMC).
Sources told Propakistani that four Chinese companies have visited Pakistan and met with relevant authorities in this regard.
Sources said out of the total land operated by PSMC under its land lease agreements, the government has already transferred almost 6,000 acres to a new company that is owned by the state-run steel manufacturer.
Earlier, the Sindh government had a few issues with the privatization of PSMC under the previous government. Now, a member of the coalition regime is heading the Privatization Commission, and if planned promptly, the sale of PSMC shares to international investors is expected to be completed smoothly and without delays.
Since last year, almost half a dozen pre-qualified international investment companies have visited the steel mills’ premises.
Higher-ups in the government are of the view that the privatization of Pakistan Steel Mills is vital for Pakistan’s economic growth. The plan not only targets foreign direct investment and employment generation but also the creation of the productive capacity necessary to sustain domestic infrastructure development with access to steel slated for export from Pakistan’s strategic geo-location.
It is expected that PSMC’s balance sheet will be cleared and its losses will be transferred to another company after the transaction is completed. Also, after privatization, the corporation’s steel mill production has been estimated at one million tons in the first year, two million tons in the second year, and three million tons in the third year.
In 2006, the Pakistan Steel Mills privatization fetched the highest bids for 75% stakes of $ 362 million from a consortium of local and foreign investors. Supreme Court letter declared the process null and void.