The plan for privatisation of Pakistan Steel Mills is still intact and option under consideration is to give the PSM on a 30-year lease, said secretary privatisation. While briefing the Senate Standing Committee on Industries, presided over by Senator Hidayatullah, here on Friday, Secretary Privatisation Irfan Ali stated that Pakistan China Consortium, which was appointed for transaction advisory, proposed that the government will have to clear PSM liabilities if it wants to privatise it.
"The PSM liabilities have increased to Rs 180 billion," he said, adding the plan is that 8,000 acres of PSM land will be sold to settle outstanding dues and loans of Sui Southern Gas Company (SSGC) and National Bank of Pakistan (NBP) respectively as well as to pay the gratuity and provident funds of the retired PSM employees. He said the government's plan is to give PSM on a 30-year lease and interested bidders would present a comprehensive investment plan to the government.
The secretary further stated that "overall perception is that private sector works well as compared to the public sector in running an entity." The committee also sought details of the 930 acres of PSM land sold to the NIP and payment received against it. Senator Kulsoom Parveen and Mian Attique also reminded that the PSM was to be privatised during the Musharraf regime but Sadia Abbasi, the sister of Prime Minister Shahid Khaqan Abbasi, at that time moved the Supreme Court against it and the then CJP turned down the deal. "The government wants to sell the PSM mainly because of its land," said Senator Kulsoom Parveen.
Senator Taj Haider said that provincial government would not allow sale of PSM land, adding he would personally lead a sit-in if any effort is made to sell PSM land on the pretext of clearing its liabilities. He asked the federal government to bring on record its communication with the Sindh government about the offer made to it regarding PSM.
He said the government informed the Senate in writing that none of the 89 units privatised were operating and these units were closed down and their land was sold out. He was supported by other senators. The meeting was informed that Rs 18.5 billion bailout package was approved by the ECC in 2014 and it was also decided to freeze outstanding gas payment and interest for two years. However, Senator Taj Haider said that ECC decision was not implemented and SSGC not only issued huge gas bills along with surcharge but also disconnected gas supply to the PSM and as a result the PSM has been non-operational since 2015.
The members of the committee even observed that the Petroleum Ministry did not disconnect gas supply to K-Electric despite the fact that it was a private entity. The committee was informed by a senior official of Ministry of Privatisation that a proposal for seeking consolidated amount required for gratuity and provident funds for the retired employees of the PSM will be taken to the Economic Co-ordination Committee (ECC) of the Cabinet for approval in a week. "We have requested the Ministry of Industries to give us a consolidated amount required for gratuity and provident fund till June 2018 for taking approval from the ECC, said Secretary Privatisation Ministry.
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