Centre does not object if Sindh govt wants to buy Pakistan Steel Mills: Minister

Published: December 21, 2013
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Petroleum and Natural Resources Minister Shahid Khaqan Abbasi. PHOTO: AFP

Petroleum and Natural Resources Minister Shahid Khaqan Abbasi. PHOTO: AFP

KARACHI: Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi stated that if the Sindh government wants to buy Pakistan Steel Mills, the Centre has no objections, Express News reported on Saturday.

“Pakistan Steel Mills (PSM) has suffered from a loss of Rs100 billion and cannot bear any further losses,” the minister further added.

Abbasi also stated that institutions that are suffering from losses will be privatised.

PSM has accumulated losses of over Rs100 billion in the last 10 years.

This is not for the first time that PSM is on the privatisation agenda. Its privatisation was taken up in 1998 but was dropped and instead it was decided to undertake restructuring of the corporation.

PSM is now on the privatisation list, once again. However, much before the government’s plan to sell 26% of its stake to prospective buyers along with management rights, Russia has shown deep interest in investing in the mill’s future. The Russians had hinted at a $1 billion investment to modernise and expand the PSM’s capacity.

In 2006, PSM was valued at Rs22 billion, in the approved bid of privatisation, which was overturned by the Supreme Court citing ‘omissions and commissions.’ Since that decision, fresh liabilities of Rs100 billion have been created, which will significantly reduce bidders’ appetite.

The corporation was inaugurated in the 1970s with the technical and financial assistance of the former Soviet Union and owns and operates an integrated steel manufacturing plant with the design capacity of 1.1 million tons per annum.

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Reader Comments (15)

  • Aadi
    Dec 21, 2013 - 2:31PM

    Good Reply. PPP destroyed it politically and Now speaking against its Privatization. Shame on PPP.

    Recommend

  • Lahori
    Dec 21, 2013 - 2:45PM

    Surprisingly, a very intelligent statement! LolRecommend

  • Blunt
    Dec 21, 2013 - 3:03PM

    /centre-will-not-object-if-sindh-govt-buys-pakistan-steel-mills-federal-minister/
    so that no one can object, when Mr. Khaqans own airblue takes over PIA.

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  • AliKuliKhan
    Dec 21, 2013 - 4:00PM

    The sindh government wants to go bankrupt.

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  • Ajab Khan Baloch
    Dec 21, 2013 - 4:23PM

    The offer is fair

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  • Saim Baig
    Dec 21, 2013 - 4:30PM

    No one will object!! Obviously no one will. When your Air Blue takes over PIA.

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  • jibran
    Dec 21, 2013 - 6:04PM

    Khhaqan Abbassis and Mian Manshas are the vultures hovering over national assets. Political gimmicks like this one aside, these vultures will take management rights by merely paying 1/4 th the price

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  • FaiselH
    Dec 21, 2013 - 6:35PM

    I hope the there is a difference between ‘privatization” and “provincialization”.

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  • Umer
    Dec 21, 2013 - 7:17PM

    If Punjab stops taking Sindh’s revenue and resources such as gas then Sindh can easily pay for both Steel Mills and whole of Punjab.

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  • Muslim Leaguer
    Dec 21, 2013 - 7:27PM

    @Blunt @Saim Baig
    Airblue was formed in 2004 (during Musharraf era) through private capital and there was absolutely no use of public money.
    On the other hand, the existing offer for PakistanSteel is from Sindh Government, which is not a private enterprise but a provincial government using public funds.
    Even a student of basic economics an understand the difference between the 2 situations here.

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  • amanat ali
    Dec 21, 2013 - 8:44PM

    This is the standard of Federal Ministers. They do not think before speaking. Indirectly he has accepted that Federal government is a complete failure and cannot bring any improvement in the working of institutions such as steel mill, PIA and railway etc. and wants to get rid of these institutions by resorting to privitization

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  • FF
    Dec 21, 2013 - 10:34PM

    How else would PPP workers continue to get paid, I mean….Pakistani Steel Mill workers…..sorry, very sorry.

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  • Chorbazari
    Dec 22, 2013 - 3:51AM

    government’s plan to sell 26% of its stake to prospective buyers along with management rights
    Can anyone please let me know the logic behind this? First thing I learned in my business class was that management rights lies to the party who has at lest 51% of stake.

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  • uH
    Dec 31, 2013 - 11:47AM

    @Chorbazari:
    Then you need to better educate yourself.

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  • smbfhs
    Jan 14, 2014 - 6:39PM

    First, we have to read the sign!Before entering, ofcourse. Our gov’t and its policies are either not on merit but simply to feed certain group in power. Bhutto simply nationalized everything to to feed his voters for atleast 40 years if not more. Most all semi or govt institutions become winning party’s harvesting fields for it’s voters. Every other party try to burn these fields for the losing party. Bhutto’s nationalization did what NS privatization is going to do…feed his friends and affiliates. Religion, communism, capitalism, racism, provincialism, extremism etc, are all just simple terms to define their method of “Entry” into feeding grounds.

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