Sindh government is unlikely to acquire Pakistan Steel Mills (PSM) without substantial incentives necessary to revive the plant, well informed sources told Business Recorder. Privatisation Commission (PC) had given the deadline of January 21, 2016 to Sindh government for submission of interest in acquiring the plant as, according to Chairman PC, all the required documents were provided to the provincial government on January 7, 2016.
According to sources, a four-member delegation of Sindh government visited the plant on January 18, 2015 and spent three hours in the plant. The sources said Sindh government feels that the documents provided so far are not helpful in taking key decisions with respect to acquiring the mills.
"The Sindh government is expected to write another letter to PC and will seek more time to reach any final decision as the balance sheet alone is not enough," the sources continued. Analysts of Sindh government argue that since the government will offer incentives in the event of privatisation, then why does it not extend similar incentives and provide technical details of assets to the provincial government. "Sindh government is seeking technical due diligence and details of assets along with an acceptable package," the sources maintained.