The News reported that Pakistan government has put off Pakistan Steel Mills’ privatization until its balancing, modernization and renovation with estimated cost of PKR 2 billion and expansion through foreign investment of USD 1.3 billion is completed.

After the BMR and expansion of PSM, a senior official in the ministry of industries & production said that “The fate of the PSM will be decided. Either it is retained under public control or privatized under the new PPP policy.”

The privatization of Pakistan Steel Mills after Supreme Court’s decision was put on hold on May 24th 2006. Although it remained on the list of the Privatization Commission successive governments repeatedly affirmed that the sale of this strategic asset would not be made in haste.

On the BMR of the PSM, the ministry is expecting an expenditure of PKR 2 billion and it would be initiated as the PSM sell off plan has been put on halt.

About expansion plan of the PSM, the official said that a foreign company would be awarded a contract for its expansion in three years. After the completion of the expansion, it would be decided either it is privatized or kept with public sector control.

With the BMR and expansion of PSM, the official hoped that PSM present capacity of 1.1 million tonnes would be enhanced to over 3 million tonnes. It is enough to meet the local demand of the steel

Under the new privatization policy of PPP, the privatization of any strategic asset would only be offered by giving 12% mandatory share to the workers and management control either with 25 to 50% share to the interested parties.

The board of the PC in its meeting also appointed a UK based company to submit a calculation with total financial impact for offering 10, 12 and 15% mandatory shares to the workers.

(Source from The news)