ISLAMABAD: The valuation of core assets of Pakistan Steel Mills (PSM), which will be transferred to a new subsidiary, is underway and the exercise is likely to be completed by January 31.
This came to light on Tuesday during a meeting, co-chaired by Privatisation Minister Mohammedmian Soomro and Industries & Production Minister Hammad Azhar.
The meeting reviewed and discussed the revival of PSM, which would be undertaken as per the cabinet’s decision, wherein core assets of PSM would be transferred to a subsidiary owned wholly by the mills, followed by the sale of the majority shares of the subsidiary thus formed without transfer of full ownership.
The meeting was briefed about the current status and progress and probable timeline for the completion of said transaction. Moreover, other matters related to the use of jetty and registration of a new subsidiary were also deliberated upon in detail.
The forum was informed that meetings are being held with various investment parties for PSM; companies of China, Russia and Korea have shown interest.
The ministers said that they would make every effort to resolve PSM-related issues so that the transaction can be completed on time.
Officials of the privatisation ministry stated they were actively following the scheme of arrangement, whereas the transaction structure has already been approved.
Separately, Soomro chaired a detailed meeting regarding the loss-making power distribution companies (DISCOS).
The meting was informed that following the directions of the prime minister and to bring efficiency in the power sector, the Privatization Commission had initiated a process under which proper mapping of the DISCOs would be carried out.
Special Assistant to Prime Minister on Power Tabish Gohar and NEPRA chairman were also present on the occasion.
Speaking on the occasion, the minister said that the purpose of the meeting was to bring on the table key stakeholders of the power sector and initiate reforms of the DISCOS towards achieving efficiency through revamping.
As per the decision of the Cabinet Committee on Privatisation, the energy ministry has submitted to the privatization commission all the required information pertaining to the ten DISCOs along with the information required on the formats prescribed by the privatization ministry.
These included Faisalabad Electricity Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company (HESCO), Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO), Multan Electric Supply Company (MEPCO), Peshawar Electric Supply Company (PESCO), Quetta Electric Supply Company (QESCO), Sukkur Electric Supply Company (SEPCO), and Tribal Areas Electric Supply Company (TESCO).
It may be recalled that the CCoP, in its meeting on January 4, had decided that the privatization ministry would expedite privatization/management contracts related to DISCOs, as already included in the first phase, and submit a viable implementation plan, in consultation with the Power Division, to the CCoP for consideration. The Power Division was also asked to expedite completion of requisite actions prior to the privatization in this regard.