The stand-off between the federal government and the Sindh government is continuing as the provincial government has sought additional time to decide on the acquisition of Pakistan Steel Mills (PSM). January 21, the deadline given to Sindh by the federal government expired on Thursday (yesterday) to either accept or reject the offer to acquire the PSM.
In October last year, the government had offered PSM to the Sindh government. Talking to Business Recorder, Chairman Senate Standing Committee on Finance, Saleem Mandviwalla, said that it is inappropriate that the federal government has fixed a deadline for the Sindh government for the acquisition of PSM. The Sindh government will submit a comprehensive reply in this regard to the PC within one month, he added, saying the federal government cannot issue a deadline to the provincial government. Last week, the provincial government called a meeting to discuss the federal government''s response to the queries raised by the Sindh Finance Department. "The federal government should focus on the terms and conditions of the provincial government in case of PSM," Mandviwalla said. He said the federal government should take up the matter in the Council of Common Interests (CCI) for the transfer of PSM from federal to the provincial government. He maintained that a discussion with federal government showed that the financial advisor of the PSM has not prepared a transaction structure for privatisation yet.
A Member of PC Board told Business Recorder that the federal government wanted to privatise the PSM in running condition, a commitment that will require billions of rupees injection as the unit is currently running at around 3 percent capacity. He said that a number of foreign investors, including those from Russia, China and Saudi Arabia, have shown an interest in the PSM but the federal government put the privatisation of PSM on hold after it decided to offer it to Sindh.
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