ISLAMABAD: A meeting of the Cabinet Committee on Privatisation (CCoP) directed the ministries of Industries and Production, Energy and Maritime, on Friday, to work with Privatization Committee to remove all bottlenecks expeditiously for the revival of the Pakistan Steel Mills (PSM).
The first meeting of the CCoP presided over by Finance Minister Miftah Ismail was presented the roadmap for current privatisation programme by the chairman Privatization Commission (PC) for reaffirmation by newly-constituted CCoP.
According to the PC chairman the plans included revival of the PSMC through significant foreign direct investment and technology transfer and thereby, generating employment opportunities for qualified workers.
The committee was informed about a recent due diligence visit by a team of BaoSteel. The meeting was informed that BaoSteel largest steel producer, which manufactures 180 million tons of steel per annum and is one of four interested parties that plans to increase capacity of PSMC to three million tons per annum (mtpa).
The meeting welcomed the prospect of the PSMC revival, entailing commercial leasing of 1,229 acres of land and jetty, and directed ministries of Industries and Production, Energy and Maritime to work with the PC to remove all bottlenecks expeditiously.
The CCoP was also informed about the ongoing effort to recapitalize the NPPMCL, the owner of two RLNG power plants in Balloki and Haveli Bahadur Shah.
The Finance Ministry in a statement stated that earlier, Privatization Commission has arranged bids of Rs102 billion from a local syndicate of banks for the NPPMCL, which will release government funding and is currently working actively with relevant ministries to fulfill conditions precedent necessary for financial close.
The CCoP decided to form a sub-committee comprising Minister of Power, Chairman PC, secretaries of Power, Petroleum and Privatisation, Additional Secretary Finance Division and CEO NPPMCL for immediate resolution of bottlenecks.
Furthermore, the chairman PC tabled a summary on private sector participation in management of DISCOs.
The CCoP agreed that this is a critical area of focus and directed PC to take one DISCO at a time to pursue a concessional arrangement focused on enhancing their financial viability and service quality. Additionally, the transfer of DISCOs to provinces was also deliberated.
The Minister of Finance apprised the CCoP of foreign government interest in investing in Pakistan.
The CCoP deliberated the modalities for negotiated Government-to-Government (G2G) commercial transactions and decided that it is not the domain of Privatisation Commission.
The CCoP directed the Ministry of Finance to formulate the proposal for structured transactions in coordination with relevant ministries for consideration of the Cabinet.
The CCoP decided to reconvene and conduct further review of the privatisation programme which is a high priority under current economic situation.
The meeting was attended by Federal Minister for Privatization Abid Hussain Bhayo, Minister for Defence Khawaja Muhammad Asif, Minister of Interior Rana Sanaullah Khan, Shahid Khaqan Abbasi, Advisor to the Prime Minister on Establishment Division Ahad Cheema, Chairman Privatisation Commission Saleem Ahmad, and others.
Copyright Business Recorder, 2022