Former SSGCL chief likely to become PSM CEO

The government is likely to appoint former Managing Director, Sui Southern Gas Pipeline Company (SSGCL), Faizullah Abbasi, as Chief Executive Officer (CEO) of Pakistan Steel Mills (PSM) in an effort to improve the financial health of this state-run enterprise, it was reliably learnt.
Sources said that the name of Abbasi, which had been recommended to the Cabinet Committee on Restructuring (CCoR) by the Board of Directors of PSM and summary would be submitted to Prime Minister Yousuf Raza Gilani for approval. The Prime Minister has directed Finance Minister Dr Abdul Hafeez Shaikh on Tuesday after a briefing on revival plan of the PSM to accelerate the process of CEO's appointment, according to sources.
Sources told Business Recorder that the former MD of SSGCL fulfilled the criteria set by the CCoR for the post of CEO and that he was the sole candidate recommended by the Board of the PSM. The government has recently approved a Rs 6 billion bank guarantee for the PSM working capital and a decision about the restructuring of the entity would be taken in the next meeting of the Cabinet. An official said the CCoR also wanted a fully empowered Board of the PSM to move ahead on the implementation of business plan prepared by the management for the revival of entity.
According to a statement, the Prime Minister called upon the stakeholders to encourage the search for collaboration with partners including Russian Federation's offer made by the Russian Prime Minister Vladimir Putin during Prime Minister Gilani's recent visit to St. Petresburgh where he attended the SCO Summit.
Gilani was briefed on the efforts of the CCoR to undertake reforms and restructuring in the PSM including commercial and business preferences in the aftermath of losses incurred during 2008-09. The meeting was informed that the CCoR had taken a set of measures to ensure that PSM moved towards achieving recovery and financial rehabilitation. These measures include; (a) the reconstitution of Board of Directors with professionals; (b) separation of the post of Chairman and the CEO; and (c) appointment of the Chairman from among the independent Board members.
Sources said short-listing of the CEO, preparation of Business Plan by Pakistan Steel Mills, Board of Directors, Management and other measures to identify international collaboration and basic capital required for achieving higher rate of capacity utilisation of the Mills had been discussed by CCoR. The meeting was attended by the minister for finance, minister for production, secretary production, secretary privatisation and other senior officials of the relevant ministries.