The federal government is likely to go for International Competitive Bidding (ICB) seeking investment from international companies for joint ventures to revive the dysfunctional Pakistan Steel Mills (PSM), well-informed sources told Business Recorder.
This understanding was evolved amongst the members of Economic Coordination Committee (ECC) of the Cabinet, after the Revival Committee on Pakistan Steel Mills Corporation (PSMC) headed by CEO Hubco, Khalid Mansoor gave a comprehensive presentation to the committee. The Experts Group chief proposed various recommendations to make Pakistan Steel Mills a profitable and competitive organization. The committee directed that Industries and Production Division and Privatization Commission submit formal recommendations, in the form of a summary, to ECC for a final decision.
The head of experts group gave the recommendations to the ECC and now the ball is in the decision makers' court. "The ECC has appreciated the experts group for preparing valuable recommendations and directed both the Ministry of Industries and Production and Privatisation Commission to submit formal recommendations to the ECC for future line of action with respect to PSM," the sources added.
The Group has shared a complete plan which includes financial, operational and regulatory issues.
"The Group has recommended the government to go for a transparent International Competitive Bidding (ICB) with respect to revival of the mills," the sources continued. When contacted, Prime Minister's Advisor on Commerce, Textile, Industries and Production and Investment, Abdul Razak DAwood, said that the ECC has approved the plan, adding he will share it with media on Tuesday (today).
The ECC also approved the proposal of Communication Division to provide Technical Supplementary Grant amounting to Rs 500 million for the construction of Additional Carriageway on Torkham-Jalalabad Road under Prime Minister's Program for Reconstruction of Afghanistan. The decision of ECC would not only benefit the people and business community of the two neighbouring countries but would also help promote trade between Pakistan and Afghanistan as well as Central Asian States.
The ECC expressed its serious concern over the increase in prices of medicines and food items, and directed Ministries of National Food Security & Research and National Health Services, Regulations and Coordination to take practical measures to arrest the current trend of rise in prices. Petroleum Division briefed the Committee on the status of recoveries of Gas Infrastructure Development Cess (GIDC) for different industrial sections. The Committee was informed about the litigation in different courts of Law, which had inhibited the collection of revenue in recent years.
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