Economic Coordination Committee (ECC) of the Cabinet is all set to consider the much-awaited Pakistan Steel Mills (PSM) future plan on Monday (today), well informed sources told Business Recorder. To be president over by Finance Minister, Asad Umar, the committee will be given a detailed presentation by the head of Experts Group headed by Chief Executive Officer (CEO) Hubco Khalid Mansoor.
On April 6, 2019, Experts Group shared its findings with Finance Minister Asad Umar and Prime Minister's Advisor on Commerce, Textile, Industries and Production and Investment, Abdul Razak Dawood. The plan, has, however, not been shared with the PSM Board of Directors. Some reports suggest that the Experts Group has recommended to the government to again place PSM on the active list of entities which are being offered for privatisation.
However, insiders in the Ministry of Industries and Production are of the view that the Experts Group has given different options to the government, including running the mill on Public Private Partnership (PPP) mode; around six foreign and local companies having shown an interest in operating the mills on PPP mode. Abdul Razak Dawood has already conveyed that business should not be the business of government. At the same time, he wants the mill should be made functional without Investment from government's kitty.
Finance Minister, Asad Umar had also opposed privatisation of steel mills as Chairman National Assembly Standing Committee on Industries and Production during PML(N) government. The sources said the capacity of the mills needs to be enhanced from 1 million tons per annum to 3 million tons per annum. For this purpose, an investment of $800 million is required but the government does not have the money for the purpose.
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