Russians, Chinese investers interested in buying PSM, federal minister

Pakistan Steel Mills is on the verge of being privatized soon. Many investors including two Russians and many Chinese have shown interest in purchasing one of Pakistan’s biggest industrial unit, the privatization minister, Mian Muhammad Soomro said on Thursday.

During a press conference of the National Assembly Standing Committee on Privatisation, Soomro said, before taking the steps towards privitising PSM, evaluation would be done to ascertain the causes and impact, reports Express Tribune.

“A consultant is being appointed for PSM, who will evaluate whether the steel mills can be reinstated or not,” said Mian Soomro, “The PSM has been closed since 2015, while Rs400 million is being spent on monthly salaries,”

Soomro while speaking at the conference said, PSM has the similar case like PIA as it has no airplanes.

“If PIA gets airplanes, its losses can be reduced,” he added.

NA Standing Committee on Privatisation Chairman, Mustafa Mehmood favoured the stance of government on PSM privitisation saying that he is in favour of denationalizing the industry.

“If privatisation has to be done, PIA must be privatised first,” said Mehmood. “Making PIA profitable again is impossible.”

The members of the committee also reviewed the privatisation process of SME bank.

Committee Member Mukhtar Ahmed said the SME bank was destroyed ‘deliberately’ as it was a profit making entity, “Since 2006, the Privatisation Commission has kept the SME Bank in limbo.”

Meanwhile, the privatisation secretary said the SME Bank was making profit till 2008, but now it was running in losses, adding that in 2014 the bank had Rs 4bn dues which had reached Rs 11 bn.

He informed the committee that SME bank would be presented for privatisation within two or three months.