An Experts Group headed by Hubco's Chief Executive Officer (CEO), Khalid Mansoor will share Pakistan Steel Mills (PSM) future plan with Finance Minister, Asad Umar and Prime Minister's Advisor on Commerce, Textile, Industries and Production and Investment, Abdul Razak Dawood on Saturday (today) in Karachi.
Well-informed sources told Business Recorder that the expert group has completed its assignment and will present it to the government's team. Meanwhile, the Cabinet Division has also convened a special meeting of the Economic Coordination Committee (ECC) of the Cabinet on Monday to consider the plan which will be subsequently be submitted to the federal cabinet.
PSM, sources said, is unable to start functioning in its current condition, requiring a heavy investment to make it functional. The plan has been formulated by technical and financial experts, who according to head of experts group, worked without any financial benefit. The Group's chief has also made it clear that M/s Hubco will never show an interest in purchase of PSM.
According to Abdul Razak Dawood, an investment of $ 800 million is required to make the mills functional and enhancement of its capacity to 3 million tons per annum from existing capacity of 1 million tons per annum.
Half a dozen national and international private sector companies have already shown an interest in rehabilitation and expansion of the mills.
The sources said the government may opt for rehabilitation and expansion of PSM on Public Private Partnership (PPP) basis and in case of privatisation, Sindh government will not allow sale of 17000 acres of land which was sold to the federal government for the sole purpose of PSM's establishment.
PSM Stakeholders Group, headed by Mumraz Khan has also shown an interest in investment in case the government goes for revival of the mills. The Group has already shared its revival plan with the government and PSM Board of Directors.
Insiders claim that the experts group must seek approval of its plan from PSM Board of Directors prior to submission to the ECC. However, it is not clear, if the Board meeting has been convened for this purpose. There is also a possibility that all the PSM Board members are invited to attend the ECC to give their viewpoints. PSM has already been delisted from the active list of entities which are being offered for sale. The Economic Coordination Committee (ECC) of the Cabinet had given a deadline of March 31, 2019 to the experts group for submission of its plan.