ISLAMABAD - The government is working to formalise the transaction structure of the Pakistan Steel Mills (PSM), which is not operational from last one and half year due to number of issues.

“Currently the transaction structure is being formalised by the financial advisers for this transaction. Hence, the impression of its privatisation in three months is wrong,” said an official handout released by the Privatisation Commission on Thursday. Minister of State Muhammad Zubair last month informed a parliamentary committee that the government wants to revive the loss-making PSM by giving it to Chinese or Iranian investors on lease.

The PSM is closed from last one and half year and the federal government is paying salaries to the workers of the mill. The losses and liabilities of the Pakistan Steel Mills are more than Rs300 billion. With regard to the issue of land valuator, the Privatisation Commission had hired the services of M/s Iqbal A Nanjee (IAN), an approved valuator of the State Bank of Pakistan, for conducting the valuation of the PSM assets. The report submitted by M/s IAN clearly reflects that the value of PSM land ranges from Rs13 million/acre for undeveloped land to a maximum of Rs30 million/acre for fully developed land.