Pakistan Steel Mills (PSM) will generate revenue of Rs 12 billion through selling its 930 acres of land to National Industrial Park (NIP) for development of an industrial park, a parliamentary panel was informed on Monday. Secretary Privatization Commission Irfan Ali informed National Assembly''s Standing Committee on Privatization that PSM board had already approved the cost of the 930 acres of land which is Rs 12 billion. Syed Imran Ahmad Shah chaired the meeting of the committee.
The secretary said that Privatization Commission anticipates that the amount will be utilized for retirement of dues of Steel Mills'' pensioners and deceased employees. He said that government has agreed to clear Rs 15 billion outstanding dues of Pakistan Steel Mills'' employees by June 2018. He said that liabilities of PSM have reached Rs 188 billion and Rs 48 billion are related to human resources of the Mills, adding that the government has to announce monthly package of Rs 380 million for PSM employees'' salaries.
Minister for Privatization, Daniyal Aziz said that late payment surcharge of Sui Southern Gas Company (SSGC) and interest on payment by the National Bank of Pakistan (NBP) against Pakistan Steel Mills made the outstanding dues swell. He said the Privatization Commission has been working with the stakeholders on various modes to run the mills on 85 percent capacity. He said that the PC in collaboration with the PSM board is carrying out audit of the financial and management accounts before evolving a strategy.
He said no land or machinery of the mills would be sold to anyone but the government is trying to come up with a financial model to bring back the mills on 85 percent capacity. For this, he said, they are looking for a revenue sharing model where a bidder would come with a viable business plan. He said the PC also anticipates that another steel mill may be built on the core land of PSM for retirement of liabilities.
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