Major developments are currently underway for the revival of Pakistan Steel Mills (PSM) as a consortium of Chinese companies is in advanced talks to acquire the state-owned company, well-informed sources told ProPakistani.
The Privatization Commission is spearheading the process of privatizing PSM and is in contact with firms already involved in the bidding process.
Sources said a group of four Chinese companies is in the lead to acquire PSM. According to Ministry of Industries and Production officials, two Chinese companies have already visited PSM.
Eight companies have so far expressed interest in acquiring PSM, while another group of 6 companies has submitted eligibility documents for participating in the bidding process.
Sources said Steel Corp Private Limited has acquired PSM’s main plant and 1,229 acres of company property. The National Electric Power Regulatory Authority (NEPRA) has also issued a power generation license in the name of Steel Corp.
Meanwhile, efforts are currently underway for the payment of pending dues of Sui Southern Gas Company Limited owed by Pakistan Steel Mills.
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.
Since 2015, PSM has remained inactive for many reasons. Later in 2020, a savings policy was implemented to reduce losses incurred by the enterprise, a move which saw 5,282 PSM employees lose their jobs.