ISLAMABAD - Roadshow for the privatisation of Pakistan Steel Mills (PSM) started in Islamabad on Monday.
The government has organized roadshow for the revival of Pakistan Steel Mills(PSM) for international investors. Federal Minister for Privatisation, Mohammedmian Soomro initiated the activity of roadshows for revival of Pakistan Steel Mills, here in Islamabad. Federal Secretary, senior officers of the Ministry’ Financial Advisors and investors participated. The roadshows will continue till September 21. On the first day two international investment companies /potential investors were briefed about the revival of PSM. Investors from different countries have shown keen interest in the Steel Mills, which is very encouraging, said federal minister. He further said, “According to the directions of Prime Minister we are providing maximum information to the interested investors. In the end, the best possible investors will be shortlisted through a transparent process.”
The Cabinet Committee on Privatization (CCOP) has recently decided that Pakistan Steel Mills would split into two companies. The government would sell majority stakes of the new good company. It had also decided that the federal government will retain minimum 26% stakes in the Steel Corp and majority % to 74% stakes will be sold to the private bidders.
It is worth mentioning here that PSM was closed in 2015 after previous government failed to run it due to severe factors.
According to a news report, as of December 2020, the PSM’s total assets had been reassessed at Rs558.9 billion, including Rs535.5 billion fixed assets. The fixed assets include Rs351 billion worth of land, Rs42.8 billion factory building, Rs99.6 billion plant and machinery. The liabilities are assessed over Rs307 billion. These include Rs42 billion trader and payables, Rs73 billion interest accrued and Rs71.5 billion current long-term financing. In addition to that there are Rs59.5 billion long-term financing related liabilities, Rs9.8 billion gratuity scheme, and Rs39 billion deferred tax liabilities.