PSM could ultimately land in Chinese hands?

08 Jan, 2016

Minister for Finance Ishaq Dar directed the Privatisation Commission (PC) to provide the required information on Pakistan Steel Mills to the Sindh government at the earliest so that the process of privatisation could be taken forward expeditiously. PC had received a letter from the Sindh government wherein it sought clarifications from the federal government before taking a final decision on PSM's acquisition.
The information requested by the Sindh government includes its balance sheets and financial statements for past five years and a detailed list of assets and any transaction structure developed by the federal government highlighting the Government of Pakistan's commitment to make the transaction viable for the Sindh government.
The Sindh government asked the federal government about the Supreme Court of Pakistan's observations that it would be proper to refer the matter of privatisation of the national industry to the Council of Common Interests. PC has asked the provincial government to give its response till January 21 to avoid any further delay in the privatisation of the mills. The commission had inquired about the provincial government's interest on October 14, 2014. The deadline was set during a meeting convened to formulate a response to Sindh government's letter on acquisition of PSM.
The Cabinet Committee on Privatisation (CCOP) decided on October 14 to offer the PSM along with all its assets and liabilities to the Sindh government which had conveyed its interest in acquiring the organisation. A board member of PC told Business Recorder that the federal government had prepared a detailed response to the questions raised by the Sindh government and set January 21 as the deadline for Sindh to decide whether or not it wanted to acquire the entity. The information required by the Sindh government would be provided soon. He maintained that the PC held road shows in China in September 2014 for privatisation of the PSM, signalling the government's intention to explore Chinese interest if the deal with Sindh does not materialise.

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