fbpx mmnews

Govt begins roadshows for PSM’s privatization

Federal Minister for Privatisation Mohammedmian Soomro chaired the open session of roadshows for revival of Pakistan Steel Mills. Source: PID.

ISLAMABAD: The government has started roadshows for potential investors for the privatization of Pakistan Steel Mills (PSM) in Islamabad.

Federal Minister for Privatisation Mohammedmian Soomro initiated the activity of roadshows for the revival of Pakistan Steel Mills. Federal Secretary, senior officers of the Ministry’ Financial Advisors and investors participated. The roadshows will continue till September 21.

On the first day two international investment companies/potential investors were briefed about the revival of PSM. Investors from different countries have shown keen interest in the Steel Mills, which is very encouraging, said federal minister.

He further said that according to the directions of the prime minister we are providing maximum information to the interested investors. In the end, the best possible investors will be shortlisted through a transparent process, he added.

The Cabinet Committee on Privatization (CCOP) has recently decided that Pakistan Steel Mills would split into two companies. The government would sell the majority stakes of the new company.

It had also decided that the federal government will retain minimum 26% stakes in the Steel Corp and majority shares will be sold to the private bidders. It is worth mentioning here that production at the PSM was closed in 2015

According to reports, as of December 2020, the PSM’s total assets had been reassessed at Rs558.9 billion, including Rs535.5 billion fixed assets. The fixed assets include Rs351 billion worth of land, Rs42.8 billion factory building, Rs99.6 billion plant and machinery.

The liabilities are assessed over Rs307 billion. These include Rs42 billion trader and payables, Rs73 billion interest accrued and Rs71.5 billion current long-term financing. In addition to that there are Rs59.5 billion long-term financing-related liabilities, Rs9.8 billion gratuity scheme, and Rs39 billion deferred tax liabilities.