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ISLAMABAD: The Privatisation Commission (PC) Board is to meet on Friday (July 16) to approve revised valuation of core and non-core assets of Pakistan Steel Mills (PSM), aimed at paving the way for its revival, well-informed sources to Business Recorder.

To be presided over by Minister for Privatisation, Mohammedmian Soomro, the meeting will also discuss other pending issues related to revival of PSM.

The PC spokesperson said that the PC Board will approve audited accounts and list of assets to be transferred to the subsidiary.

The sources said, PC argues that the valuer M/s Joseph Lobo has counted some non- core assets as core assets due to which the cumulative value of PSM assets has changed.

PSM Board has also approved alteration in value of core and non-core assets in the already approved value of M/s Joseph Lobo. It is unclear who presided over the meeting as the Chairman PSM Board Aamir Mumtaz has already resigned from the Transaction Committee and did not attend the meeting due to reported differences for not considering his recommendations.

“The recently held meeting was to approve a small change in the classification of core and non- core assets for the subsidiary, however it is still based on the Lobo valuation,” said Aamir Mumtaz.

PSM management has also paid Rs 25,000 fee each to six Board members including the CEO for attending the meeting held on July 13, 2021. However, Chairman, PSM Board said “I was unable to attend this meeting. In any case I have never taken these cheques since joining the Board in late 2019, as I had offered my services on a voluntary basis and so I could not accept these payments”.

Finance Minister, Shaukat Tarin recently proposed two more valuations of assets of PSM as he was not satisfied with the valuation already done by the Privatisation Commission.

He discussed valuation of the core assets of PSM reflected on the balance sheet of the new subsidiary and issuance of NOC by (a) National Bank of Pakistan; and (b) Sui Southern Gas Company Limited (SSGCL).

After detailed deliberation, the following decisions were made: (i) Privatisation Commission shall undertake two more valuations of the core assets with the approval of CCoP, if required. One of the valuation may be assigned to Nespak while the other valuation may be undertaken by one of the top 5 valuers on the approved list of Pakistan Banks’ Association; (ii) to expeditiously process the issuance of NOC by NBP, AFS (CF) a meeting with the representatives of NBP, PSM, M/o Industries and Production and Privatisation Commission will be held; and (iii) regarding issuance of NOC by SSGC, it was decided that the payment schedule of Rs. 22 billion principal outstanding, subject to reconciliation, may be kept at 7 years supported by a Letter of Comfort (LoC) by Finance Division. A meeting will be chaired by Finance Minister to find a way forward for the settlement of LPS.

Copyright Business Recorder, 2021

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