ISLAMABAD, Feb 13: President Gen Pervez Musharraf has asked the Privatization Commission to expedite the disinvestment of Pakistan Steel Mills Corporation as the issue is causing unrest among potential bidders and employees of the organization.
Sources told Dawn on Monday that the president directed the officials concerned to complete the transaction as was given to understand to the five pre-qualified bidders and the public at large.
However, the PC was unable to privatize the mills even according to the new schedule of Feb 19 because of various reasons.
The president believed that the delay was sending wrong signals to potential local and foreign investors.
The president, sources said, regretted that mills could not be disinvested by Dec 31, 2005 or on Jan 31 despite assurances given by the Privatization Commission.
Growing differences between PC officials and employees and officers’ unions, who were opposing the deal and seeking a better package.
The sources said that the president’s chief of staff Lt-Gen Hamid Javed had been directed by Gen Musharraf to look into the issue and expedite the deals as early as possible.
The issue was further complicated after the Minister for Privatization and investment Dr Hafeez Sheikh decided to give up his cabinet post and get a senior position in the World Bank.
PC officials, sources said, were told if they could not privatize the mills, they should allow the management to go for necessary revamping of the organization to increase its production capacity.
Chairman of the PSMC Lt-Gen (retd) Abdul Qayyum said that the management was fulfilling its responsibilities to get the steel mills privatized.
“There has been no revamping of the mills and major plants are beyond repair, which could cause loss of lives and property”, he warned.
“Despite the fact that the 25-year-old plant needs immediate revamping, which is frozen for the past year because of the privatization, we are currently running at almost 90 percent capacity with imported coke,” the chairman of the mills said. This is, however, in the country’s interest to expedite the privatization of Pakistan Steel, he added.
“This will save it from the loot and plunder by unscrupulous elements, who are now hell bent to distort the mills’ image to sabotage its privatization,” the chairman of the mills said.
He said that the plant was excellent mechanically and it just needed some investment for automation.
