Govt intends to run PSM on public-private partnership mode, NA told

ISLAMABAD:

The National Assembly’s Standing Committee on

Industries and Production was informed on Monday that the government intended
to operate Pakistan Still Mills (PSM) on a public-private partnership in order
to transform it into a profitmaking entity.

Industries and Production Secretary Aamir

Ashraf Khawaja informed the committee, which was chaired Sajid Hussain Turi at
the Parliament House, that the plan was to lease PSM on the pattern of Pakistan
Telecommunication Company Limited (PTCL).

He said that the PSM was making an annual loss

of around Rs20 billion, adding that around $1 billion investment was required
to upgrade and operationalise PSM.

Briefing the committee, Adviser to Prime

Minister on Commerce Abdul Razak Dawood said that the government has been
incurring the losses of PSM for the past many years.

“PSM has remained closed for the last five

years. A detailed investigation was conducted in order to take stocks of the
conditions of existing machinery while estimations were made regarding the
dysfunctional and working units,” he informed.

The PM’s adviser said that the government

refrained from appointing any chief executive officer at the PSM in order to
avoid further financial burden, adding that the mill has a capacity to produce
about 1.1 million tonnes of steel per year.

“The production capacity could be increased to

three million tonnes if a strategic partner is involved to run the mill on
public-private partnership,” he added.

Dawood said that three options were discussed

to revamp the steel mills, including privatization of the mill, running it
under government control and finding a suitable partner to engage in
public-private partnership.

He said that several foreign companies from

China, Russia and Korea had expressed their keen interest in running the mill
the public-private partnership mode.

Speaking on the occasion, MNA Asif Ali Zardari

suggested the committee to take the Sindh government on board in order to
create a win-win situation for both the federal and the provincial government.

He asked for finding a Chinese company as a

partner in this regard, as they (Chinese companies) have a potential to
transforming PSM within a short span of time.

Members of National Assembly Riazul Haq, Rana

Muhammad Ishaq Khan, Mahar Irshad Ahmed Khan, Shandana Gulzar Khan, Sajida
Begum and senior officials of the Ministry of industries and Production were
also present on the occasion.

profitmaking entity.

Briefing the committee, which was chaired Sajid

Hussain Turi at the Parliament House, Adviser to Prime Minister on Commerce
Abdul Razak Dawood said that the government has been incurring the losses of PSM
for the past many years.

“PSM has remained closed for the last five years.

A detailed investigation was conducted in order to take stocks of the
conditions of existing machinery while estimations were made regarding the
dysfunctional and working units,” he informed.

The PM’s adviser said that the government

refrained from appointing any chief executive officer at the PSM in order to
avoid further financial burden, adding that the mill has a capacity to produce
about 1.1 million tonnes of steel per year.

“The production capacity could be increased to three

million tonnes if a strategic partner is involved to run the mill on public-private
partnership,” he added.

Dawood said that three options were discussed to

revamp the steel mills, including privatization of the mill, running it under
government control and finding a suitable partner to engage in public-private
partnership.

He said that several foreign companies from China,

Russia and Korea had expressed their keen interest in running the mill the
public-private partnership mode.

Speaking on the occasion, MNA Asif Ali Zardari

suggested the committee to take the Sindh government on board in order to create
a win-win situation for both the federal and the provincial government.

He asked for finding a Chinese company as a

partner in this regard, as they (Chinese companies) have a potential to transforming
PSM within a short span of time.

Members of National Assembly Riazul Haq, Rana

Muhammad Ishaq Khan, Mahar Irshad Ahmed Khan, Shandana Gulzar Khan, Sajida
Begum and senior officials of the Ministry of industries and Production were also
present on the occasion.