Summary Federal government is planning to lease out PSM for 45 years instead of privatizing it.
ISLAMABAD (Dunya News) – Federal government is planning to lease out Pakistan Steel Mills (PSM) for 45 years instead of privatizing it according to sources of Privatization Commission.
A proposal has also been made in this regard and two companies, Iran’s representative Siddique Steel and China Bio Company’s syndicate in Lahore, are going to overview the long term lease opportunity.
Struggling from financial crisis, Pakistan Steel Mills were given bailout packages worth 38 billion rupees in Pakistan Peoples Party’s (PPP) tenure of five years.
The condition of PSM got worst with every coming year as the liabilities kept on increasing which brought the production level to zero in last one and half years.
The payables of Steel Mills have increased to a record 178 billion rupees.
According to sources, if the board of Privatization Commission grants permission to lease out PSM for 45 years, then the proposal will be discussed in a session of Cabinet Committee on Privatization on January 20 that will be chaired by Ishaq Dar.
