ISLAMABAD: The decision on the fate of Pakistan Steel Mills (PSM) was postponed indefinitely on Friday by the Cabinet Committee on Privatisation (CCoP). The CCop also put on hold the five percent divestment of the government residual shareholding in the Oil and Gas Development Company (OGDCL).
According to media reports, the meeting in which the decision was made also had the transactions of both PSM and OGDCL on its agenda as the discussion on the said issues had already been rescheduled twice over the past one week.
The CCoP was to discuss the tripartite concession agreement for PSM. The board had made a decision to hand over the plant and machinery to a new company and while the land would remain with the government. The board decided that no asset of the country’s largest industrial complex would be sold.
A meeting was called by Ishaq Dar to discuss the PSM issue. The finance minister directed all stakeholders to work together to formulate a timely and effective solution for addressing the liabilities of the mills which were putting a strain on the national exchequer.
Dar expressed confidence in the decision of the CCoP that it would be helpful for the economic growth in the country and improve its financial health. He asked the Privatisation Commission to ensure transparency in carrying out the transactions.
Dar asked for help from the Privatization Commission and the Ministry of Industries to ensure effective coordination so as to curb the problem of PSM and the current issues which are being faced by the mill.
The CCoP considered the strategic sale of Kot Addu Power Company (Kapco) and directed the Privatisation Commission and Water and Power ministry to complete all formalities before formal approval.
The committee also approved the transaction structure of Small Medium Enterprise (SME) Bank for privatization in light of guidelines from the State Bank of Pakistan.
Furthermore, the committee approved initiation of the process for listing of Gujranwala Electric Power Company (GEPCO) shares on the Pakistan Stock Exchange through IPO (initial public offer).
The CCoP recommended inclusion of House Building Finance Corporation Limited and First Women Bank Limited in the ‘Privatisation Programme for Early Implementation’.
The meeting was attended by the ministers Zahid Hamid and Shahid Khakan Abbasi, Privatisation Commission Chairman Mohammad Zubair, Board of Investment Chairman Miftah Ismail and SECP Chairman Muhammad Zafar-ul-Haq Hijazi.
