PSM inches closer to privatisation as PC accords key approvals

ISLAMABAD: A Privatisation Commission (PC) Board meeting on Friday accorded a number of key approvals furthering the process of Pakistan Steel Mills Corp (PSMC) denationalisation.

The PC board met under the chair of Minister for Privatisation Mohammedmian Soomro to review the pre-qualification criteria of investors for revival of PSM and auction result of Services International Hotel (SIH) among others.

According to the official statement, revival of PSM is one of the important objectives of privatisation plan, as the PSM is not working since 2015; hence the government has planned to bring foreign and domestic investors for the revival of the country’s largest industrial corporation.

There have been consecutive meetings with the stakeholders and Ministries to resolve the issues.

As per transaction features approved by Cabinet Committee on Privatisation (CCoP) the identified core operating assets would be transferred to the new subsidiary owned by PSMC named Steel Corp (Pvt) Ltd and then the divestment of equity stakes of the subsidiary shall be 51-74 percent through bidding process.

In view of the decision of CCoP, the Expressions of Interest (EOIs) would be invited, for pre-qualification of investors, the statement said.

Moreover, the draft document containing eligibility criteria along with basis of disqualification for the potential investors was also placed before the PC Board for deliberation and approval.

In a key development the PC board gave go-ahead to Request for Statement of Qualification and EOI documents.

In the light of the decision of Federal Cabinet, Ministry of Privatisation would publish the advertisement, inviting the EOIs after filing of Scheme of Arrangement by PSM with Securities & Exchange Commission of Pakistan.

Addressing the meeting, federal privatisation minister said, “We have come long way, with a focused objective to revive the largest industrial unit of Pakistan, which could run in its best capacity and contribute to the national economy”.

The PC Board also recommended the highest bidder, for Service International Hotel, i.e. Faisal Town (Pvt) Ltd along with offered bid which was higher than the reserved price.

The letter of acceptance to the successful bidder will be issued after seeking approval of the CCoP/Cabinet. Moreover, in pursuance of the approval of PC Board, 12 pre-qualified parties for Jinnah Convention Center (JCC) have been notified for participating in the future steps of JCC bidding.