Pakistan Steel Mills to be privatised by PC

Pakistan Steel Mills to be privatised by PC

ISLAMABAD (APP): The Sub-committee of Public Accounts Committee ( PAC) on Wednesday was informed that the Cabinet Committee on Privatization (CCoP) has directed Privatization Commission (PC) to again initiate privatization process of Pakistan Steel Mills (PSM), after waiting for about 9 months for a response from Sindh government.

The meeting of the committee was held under the chairmanship of Syed Naveed Qamar, at Parliament House.

Sardar Ahmad Nawaz Sukhera, Secretary, Privatization Commission Ministry of Finance, Revenue, Economic Affairs, Statistics and Privatization briefed the Public Accounts Committee (PAC) on privatization programme of the government.

The Sindh government did not give a formal response to the federal government's proposal to acquire the industrial unit despite of nine letters written to them.

He further said that the privatization commission's board also allowed the government to start afresh the Heavy Electrical Complex (HEC) sell-off process after the previous deal collapsed. Secretary PC said that the CCOP had raised the bid of HEC from single bidder from Rs 250 million along with liabilities to Rs 1095 million.

The party showed its willingness to buy the entity but could not pay the amount in time.

The Chairman State Engineering Corporation said that HEC has been turned into a profitable entity. The sale volume of the entity reached to Rs 900 million which is 142 percent increased. The pre- tax profit of the HEC is Rs 93 million and has Rs 700 million worth of orders. It is running on 94 percent capacity.

He further revealed that Pak Tool Factory has also turned into profitable entity which has Rs 700 million export orders and Rs 1 billion business.

He further said that the efficiency of the HEC, Pak Tool Factory have been badly affected since it was put in the privatization list.

But they have been turned into profitable organization through honest and dedicated managements.

Additional Secretary Ministry of Industries and Productions said that the CCoP should revisit its decision of privatizing HEC as its balance-sheet is showing profit.

He further said the PC has learned a lesson from HEC privatization. Now, they will hire the services of financial advisor rather an evaluator.

The PC also planned a strategy to mature Rs 11 billion claims against various parties in 170 legal cases. "We are referring cases against parties to FIA, NAB and working on out of court settlement as decisions comes in years in court cases take", he added.

He further said that Suraj Ghee Industries Limited's case is in Lahore High Court and negotiation with Punjab Government on Ghee Corporation of Pakistan is underway.