11 global companies show interest in PSM revival

As many as eleven international companies have expressed their interest in the revival of Pakistan Steel Mills (PSM), sources in Privatization Division told Business Recorder.

Privatization Division was contacted by eleven international companies from Russia, China, the US and Pakistan for information regarding revival of PSM. The revival of PSM is among the foremost priorities of the government.

The representatives of two Chinese companies - Metallurgical Corporation of China Ltd (MCC) and NHI International Trade Company - visited the Privatization Division and showed interest in the revival of PSM. They have already visited Privatization Division and discussed the revival plan of PSM.

The third Chinese company, M/s Sino Steel Equipment & Engineering Company Ltd, has also shown interest in the revival of PSM but no delegation of the company has so far arrived in Pakistan.

Four Russian companies contacted the management of Privatization Division but no one visited Pakistan so far. These are Tyazhpromexport, Central Scientific Research Institute of Ferrous Metals, Metrom Group of Companies and Statue Scientific Center, and Central Scientific Research Institute (Ministry of Industries & Trade).

Ukrainian National Foreign Economic Corporation Vazhmashimpex and Hussain Concepts & Solution Pvt Ltd (Consortium of 5 Ukrainian companies) are yet to visit Pakistan. ESSA Corporation from the US and local Besrock (Pvt) Ltd also showed interest in the government's decision for revival of the PSM.

According to the provisional figures, total liabilities of the PSM reached Rs 219 billion till June 2019 against the total assets of Rs 149 billion. Accumulated losses reached Rs 207 billion and net worth of the PSM is Rs 70 billion.

The Privatization Division will also sign Financial Advisory Services Agreement (FASA) with the consortium of Pak-China Investment Company & BOC International, Deloitte, Sinosteel, Cornelius Lane & Mufti, Abacus Consulting and Nanjee in a couple of days for revival of the Pakistan Steel Mills (PSM). The same consortium had applied for FA during Pakistan Muslim League-Nawaz government in February 2015.