PSM on 'as is where is' basis: Federal government makes formal offer to Sindh

Privatisation Commission has reportedly written a letter to the Chief Minister, Sindh, Syed Qaim Ali Shah offering him to acquire Pakistan Steel Mills (PSM) on "as is where is" basis, well informed sources told Business Recorder. On October 2, 2015, Cabinet Committee on Privatisation (CCoP) had decided that as the Sindh government had expressed an interest to acquire the Steel Mills, the provincial government may be offered to acquire the PSMC with all its assets and liabilities.
Chairman Privatisation Commission, Muhammad Zubair, will unveil the letter's contents at a press conference on Wednesday (today). According to sources, PTI Chief Imran Khan had demanded of the federal government to give Peshawar Electric Supply Company (Pesco) to provincial government. However, when the federal government made that offer to the provincial government at a meeting of Council of Common Interests (CCI) in February 2014, Chief Minister, Pervez Khattak and Chief Secretary consulted each other and regretted to acquire the company.
In reply to a question, the sources said, if Sindh government agreed to acquire PSMC, then both parties will set terms and conditions of transaction. "It is the responsibility of the government to ensure continuity of industrial activity and a housing project will be not be allowed on the land of PSMC," the sources maintained. The buyer has also to ensure job security of employees, the sources said, adding that in case of sell off, government will not extend any subsidy to the buyer in future.
The sources said, Sindh government had shown an interest in acquiring Hyderabad Electric Supply Company (Hesco) and Sukkar Electric Supply Company (Sepco) with the condition that the federal government should continue a subsidy for five years to both the Discos which was against the principles of privatisation. The federal government, sources said, had refused to sell both the entities on the plea that the subsidy condition is not acceptable.