November 13, 2023 (MLN): The privatization of the Pakistan Steel Mill has been annulled due to the mill's outdated technology and the exorbitant costs required for refurbishment, Fawad Hasan Fawad, the Caretaker Federal Minister for Privatization, stated during a televised interview on Sunday.
According to Fawad Hasan, the Pakistan Steel Mill, with a maximum production capacity of 1.1 million tons, is currently operating on technology that is over 70 years old.
Describing the mill as essentially scrap at this point, he disclosed that a staggering $585 million would be needed to revitalize the outdated infrastructure and restart production at the 1.1 million-ton level. The mill occupies a vast 1229-acre land.
To provide context for the decision, Fawad highlighted a striking comparison with modern technology.
He stressed that with newer technology, a production capacity of 10m tons could be achieved at a cost of $2.25-2.5 billion.
More importantly, the advanced technology would require only a fraction of the land, of around 200-300 acres.
Fawad emphasized that given the dire condition of the existing infrastructure and the substantial financial disparity between reviving the outdated mill and investing in newer technology, the decision to annul the privatization process was a logical and necessary one.
