ISLAMABAD – Pakistan and China to take important decision over the PakistanSteel Mills under China Pakistan Economic Corridor.
China and Pakistan are looking a the possibility to include Pakistan SteelMills (PSM) in China Pakistan Economic Corridor (CPEC), said a report by alocal newspaper.
According to the report, the said proposal was discussed at the 9th JointCooperation Committee (JCC) meeting held on November 6, 2019 in Islamabad.
However, other options are also open for getting the “best deal” to revivethe PSM, which is inflicting about Rs. 2 billion monthly losses to thenational exchequer. The report quoting the sources said the revival of PSMwas also discussed between Pakistan’s top political leadership and theChinese top brass during recent visits. However, no final agreement wasreached between the two countries.
“If both countries agree to include PSM in CPEC, it will be out of PPRAradar,” quoted the sources of the report.
The debts and losses of the PSM increased from Rs. 460 billion to Rs. 510billion during PTI government as Rs. 120 million per day financial bleedingcontinued.
Read Top Stories
The PSM Board recently selected Additional Secretary, Ministry ofIndustries and Production, Alam Mahsud to run its affairs temporarily.
Chairman PSM Board, Aamir Mumtaz, stated that the Government of Pakistan,PSM Board, and management are determined to revive the entity. Theobjective of the revival is to restore the production capacity of the millsto its original maximum level of 1.1 million tons and operationalize allthe associated downstream mills. In the second phase, the mills will beexpanded to 3.3 million tons.
The government and the board intend to achieve the revival through avariety of possible models. These include Public-Private Partnerships (PPP)managed through the Privatisation Commission, direct investments, jointventures or other forms of collaboration. Discussions with internationalinterested parties on a variety of possibilities are taking place.
The PSM’s board and management are also engaged in discussions with localgroups.
