According to a recent report by ARY News, the interest of Chinese partiesin acquiring Pakistan Steel Mills (PSM) has dwindled significantly, withthree out of the four initially interested parties no longer keen on thetransaction. Federal Minister for Privatisation, Fawad Hassan Fawad,revealed this information during a press conference.
Among the four Chinese companies that formed a group to express interest inthe privatization of PSM, only one remains committed to the endeavor. Thisdevelopment raises questions about the future of the mill and thegovernment’s plans regarding its privatization.
In light of these changes, Minister Fawad emphasized that the PrivatisationCommission will persist in discussing the fate of PSM, taking into accountthe recommendations provided by the financial advisors appointed back in2020. This suggests that despite the waning interest from Chineseinvestors, the government is determined to explore avenues for the mill’sprivatization. However, he made it clear that the caretaker government’sinvolvement will be limited to the operational aspects of PSM and won’tencompass any dealings related to its land holdings.
As the situation regarding PSM’s privatization remains uncertain, recentdevelopments indicate that financial matters are also coming into focus.The Economic Coordination Committee (ECC) has granted authorization to theFinance Division to approve the projected net salary payments for the firstsix months of the Financial Year 2023-24.
These payments are intended to align with the salary demands of PSMemployees, utilizing funds from the already approved budgetary allocationof Rs. 10 billion. This move underscores the ongoing financial challengesfaced by the steel mill and the government’s efforts to address them.
Read Top Stories
In summary, the evolving dynamics surrounding the potential acquisition ofPakistan Steel Mills by Chinese parties, along with the government’scommitment to continue discussions on privatization and address financialissues, paint a complex picture for the future of this significantindustrial entity in Pakistan.
The fate of PSM remains uncertain, with only one of the four Chinesecompanies maintaining interest, and further decisions and developments areeagerly anticipated in the coming months.
