Govt finalises draft accord for settlement of PSM’s liabilities

ISLAMABAD: The government has finalised the draft agreement for settlement of billions of rupees liabilities of the Pakistan Steel Mills (PSM) that it owes mostly to the Sui Southern Gas Company Limited (SSGCL) and National Bank of Pakistan (NBP).

The Privatisation Commission on Tuesday shared the draft with them who will seek consent on it from their respective boards. The government would also seek input from the central bank on it.

It is worth mentioning that the government is considering to lease out this largest industrial complex to a private concern under a revenue sharing arrangement and settling this outstanding issue was very much necessary.

To this effect, Federal Minister for Privatisation Daniyal Aziz chaired a high level meeting with the officials of SSGCL, NBP, Ministry of Finance and Pak China Investment Company Limited and officials of the PSM here on Tuesday. The officials of Finance Division, NBP and SSGCL assured their complete cooperation to resolve the issue of their outstanding dues towards PSM.

The draft agreement for settlement of liabilities was read out with legal adviser present and endorsed by the Ministry of Finance representative agreed to be presented in the respective boards of NBP, SSGCL and a copy to be sent to State Bank of Pakistan for consultation and input. The NBP and SSGCL also highlighted that they will have to seek permission from other related forums for any waiver that might be given to PSM.

Minister assured his full cooperation with regards to the provision of five-month salaries of PSM employees. The minister apprised the participants that in a recent meeting of the Cabinet Committee on Privatisation (CCOP), the transaction structure as well as a broad level liability settlement plan of PSM were discussed and CCOP has directed the Privatisation Commission to move ahead with privatisation/restructuring of PSMC in a transparent manner.

Daniyal reiterated the government’s resolve to embark upon a comprehensive liability settlement plan by taking relevant stakeholders on board. He urged NBP, SSGCL and Finance Division to extend maximum support so that the issues of settlement of PSMC liabilities might be resolved in an amicable manner.

The matter of settlement of steel mill employees dues and liabilities was discussed and it was resolved that each penny of retired and serving employees would be honoured in accordance with the employees preferences.