K-Electric gives nod for PSM sell-off

KARACHI:

The Pakistan Tehreek-e-Insaf (PTI) government has achieved a major milestone towards reviving Pakistan Steel Mills Corporation (PSMC), as K-Electric has agreed to issue a no-objection certificate (NOC) for the privatisation of Steel Corp with management control.

K-Electric gave the go-ahead despite dues of around Rs2 billion owed by the mill.

Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar has played a key role in achieving this milestone as he is on his maiden two-day visit to Karachi since getting the new portfolio in April this year, said an official source.

Sindh Governor Imran Ismail, Minister Khusro Bakhtiar, K-Electric Chief Executive Officer Moonis Alvi and Pakistan Steel Mills CEO Shujah Hassan Khurazmi are scheduled to hold a press conference to announce the development on Friday.

Bakhtiar is also expected to meet Sindh Chief Minister Murad Ali Shah on Friday to discuss whether Karachi Water and Sewerage Board (KWSB) will issue the NOC, similar to K-Electric, for the privatisation of Steel Corp (Private) Limited, which is a subsidiary of Pakistan Steel Mills.

Besides, PSMC owes dues of billions of rupees to Sui Southern Gas Company (SSGC) as well.

Earlier, the Privatisation Commission (PC) invited expressions of interest (EOIs) from interested parties for acquiring 51-74% issued share capital together with management control of Steel Corp.

The interested parties are required to submit EOIs on or before September 30, 2021.

PSMC has not been working since mid-2015 when SSGC cut gas connections due to increasing outstanding dues.

With approval of the federal government, PSMC incorporated a wholly owned private company limited by shares called Steel Corp (Private) Limited with an objective to revive the steel plant, according to the EOI tender which appeared in a newspaper recently.

Read Finance ministry to resolve SSGC, PSM dispute

“PSMC and Steel Corp have filed scheme of arrangement (SOA) with SECP (Securities and Exchange Commission of Pakistan) for transfer of core operating assets of Steel Corp including steel plant and power generation plant, the supporting infrastructure and works and other material assets as listed in Schedule 1 to the SOA in consideration of which Steel Corp shall issue its shares to the GOP (government of Pakistan),” it read.

Speaking to Sindh Governor Imran Ismail at a meeting in Karachi, Bakhtiar said that the government had taken measures to support small and medium-sized enterprises (SMEs) in the country.

He said that the new SME policy would provide all possible incentives to the industrialists and businessmen.

He added that all the outstanding issues related to the establishment of Export Processing Zone (EPZ) had been resolved. “The ministry will soon send its recommendations related to EPZ establishment to the federal cabinet,” he said.

The government is establishing an industrial park and SEZ over an area of 1,500 acres in the limits of the steel mill.

“The government is working on a priority basis to support export industries,” the minister told the governor.

Governor Ismail expressed satisfaction over the federal government’s efforts to accelerate economic activities and measures to create job opportunities in the country.

The minister also paid a visit to PSMC, the National Industrial Park (NIP) and Pak Suzuki Motor Company (PSMC) production plant at Bin Qasim.

While visiting K-Electric’s new RLNG-fired 900MW power plant at Bin Qasim, Bakhtiar appreciated the power company for its vision and said, “Karachi is an industrial hub for the country and the focus of my visit is to see the progress across sectors.”

“Industries are the engine of our economy and the government is committed to supporting their growth through enabling policies,” a K-Electric statement cited the minister as saying.

“There is tremendous potential for investment in Pakistan and a robust utility supply is integral to achieving this.”

The addition of 900MW to Karachi “is a gift to the people and the industries here, and it will be a great honour for the plant to be formally inaugurated by Prime Minister Imran Khan upon completion,” it said.

Published in The Express Tribune, September 10^th, 2021.

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