Due-diligence process, on-site visits of PSM by pre-qualified parties started

July 27, 2022 (MLN): The due-diligence process and on-site visits of the pre-qualified parties for the privatisation of Pakistan Steel Mills (PSM) have been started, Privatization Committee (PC) informed Federal Minister and Chairman Privatisation Abid Hussain Bhayo in a review meeting held today.

Federal Minister and Chairman Privatisation Abid Hussain Bhayo chaired a privatization review meeting in Islamabad today focusing on the progress so far made in the transaction of various entities to be privatized. Federal Secretary Privatisation Dr Irum A. Khan, senior officials and consultants were present.

The Federal Minister/Chairman was briefed about the updated status of the privatization of Pakistan Steel Mills (PSM). He was apprised that the meetings with the pre-qualified parties are underway as they have started their due-diligence process and on-site visits.

Federal Minister desired that the PC should focus in order to resolve all the pending matters for the early revival of PSMC, as it is one of the biggest entities on the active privatization list, and has incurred huge losses to the national exchequer since 2015.

In the review meeting, the transaction status of NPPMCL was also discussed. The Federal Minister was informed that a series of meetings with stakeholders have been held on the debt and equity matters.

For that purpose, a plan of action has already been agreed upon regarding debt-refinancing for the plant from local and commercial banks. Once the debt-refinancing and recapitalization is finalized, the sale of equity shares will quickly follow.

The Federal Minister also reviewed the privatization of HBFCL and First Women Bank Limited. The privatization of House Building Finance Corporation Limited (HBFCL) will likely be completed in the current FY, as national and international investors have shown keen interest in it. The EOIs for FWBL will be published after completion of the audit of its financials up to June 2022, the Minister was briefed.

The privatization of DISCOs was also discussed in the meeting. The working group formed for the revival of DISCOs had already given its proposals and subsequently, CCoP approved the concession model and management contract model for the privatization of ten DISCOs.

The role of local and provincial governments in salvaging the DISCOs was also discussed as it has become more crucial after the National Electrical Policy-2021.

Federal Minister Abid Hussain Bhayo directed that all concerned must put concerted efforts for the materialisation of Privatisation goals.

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