June 24, 2022 (MLN): The Cabinet Committee on Privatisation (CCoP) under the chairmanship of Federal Minister for Finance and Revenue Mr Miftah Ismail on Friday welcomed the prospect of the revival of Pakistan Steel Mills (PSMC), entailing commercial leasing of 1229 acres of land and jetty.
The committee also directed the ministries of Industries & Production, Energy and Maritime to work with the Privatisation Commission (PC) to remove all bottlenecks expeditiously.
Chairman PC Saleem Ahmad presented the roadmap for the current privatisation programme for reaffirmation by the newly constituted CCoP. He presented the government’s plans for the revival of Pakistan Steel Mills (PSMC). The plan focuses on revival through significant foreign direct investment and technology transfer generating significant employment opportunities for qualified workers.
The committee was apprised of a recent successful due diligence visit by a team of BaoSteel, the world’s largest steel producer. BaoSteel manufacturers 180 million tons of steel per annum and is one of four interested parties and plans to increase the capacity of PSMC to 3 mtpa.
CCoP was apprised of the ongoing effort to recapitalize NPPMCL, the owner of two RLNG power plants in Balloki and Haveli Bahadur Shah. Earlier, PC arranged bids of Rs. 102 billion from a local syndicate of banks for NPPMCL which will release GOP funding and is currently working actively with relevant ministries to fulfil conditions precedent necessary for financial close.
CCoP decided to form a sub-committee comprising of Minister of Power, Chairman PC, Secretaries of Power, Petroleum and Privatisation, Additional Secretary Finance Division and CEO NPPMCL for immediate resolution of bottlenecks.
Furthermore, Chairman PC tabled a summary on private sector participation in the management of DISCOs. CCoP agreed that this is a critical area of focus and directed PC to take one DISCO at a time to pursue a concessional arrangement focused on enhancing their financial viability and service quality. Additionally, the transfer of DISCOs to provinces was also deliberated.
Minister of Finance apprised the CCoP of foreign government interest in investing in Pakistan. CCoP deliberated the modalities for negotiated Government to Government (G2G) commercial transactions and decided that it is not the domain of the Privatisation Commission.
CCoP directed the Ministry of Finance to formulate the proposal for structured transactions in coordination with relevant ministries for consideration of the Cabinet.
CCoP decided to reconvene and conduct a further review of the privatisation programme which is a high priority under the current economic situation.
The meeting was attended by Federal Minister for Privatization Mr Abid Hussain Bhayo, Minister for Defence Khawaja Muhammad Asif, Minister of Interior Rana Sanaullah Khan, Mr Shahid Khaqan Abbasi, Minister for Industries and Production Syed Murtaza Mahmud, Advisor to the PM on Establishment Mr Ahad Cheema, Chairman Privatisation Commission Saleem Ahmad, Federal Secretaries, and senior officials of relevant ministries.
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