Pakistan Steel to be included in privatisation list next week

Amin Ahmed Published June 18, 2019

The CCOP is the only forum which can enlist public sector entities on the privatisation agenda. — Reuters/File

ISLAMABAD: Though the government has decided in principle to sell-off Pakistan Steel Mills (PSM), the Cabinet Committee on Privatisation (CCOP) at its meeting on Monday could not decide on enlisting the PSM on the privatisation agenda since the Ministry of Industries and Production (MoIP) failed to submit its proposal, informed sources told Dawn.

Last month, the Economic Coordination Committee (ECC) of the cabinet had approved the proposal to privatise PSM which was subsequently endorsed by the Federal Cabinet.

The CCOP is the only forum which can enlist public sector entities on the privatisation agenda.

According to sources privy to the information, the Privatisation Commission is likely to include PSM on the privatisation agenda once CCOP grants approval to the proposal. The commission is fully prepared to implement the decision, the sources added.

At Monday’s meeting, chaired by Adviser to Prime Minister on Finance, Revenue and Economic Affairs Abdul Hafeez Shaikh, CCOP directed the MoIP to submit the proposal on PSM at its next meeting scheduled for next week.

The issue of delisting of House Building Finance Corporation Ltd (HBFC) from the privatisation agenda was also recommended to be presented in the next meeting.

The previous finance secretary had recommended the CCOP to delist HBFC from the agenda since the corporation was performing well. The current finance secretary sought time from the CCOP to review the case, and said the proposal will be submitted at the next meeting.

While presenting the report of the Task Force on Energy Reforms, Ministry of Energy briefed the committee about the challenges being faced by the distribution companies (DISCOs).

The meeting also discussed various measures recommended by the task force to improve energy sector’s performance with a focus on reduction of losses and enhancing the efficiency of DISCOs.

The CCOP also directed the Ministry of Energy officials to submit proposals aimed at accelerating closure of those power generation companies that have outlived their recommended life and incurring losses.

Published in Dawn, June 18th, 2019

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Amin Ahmed is an Islamabad-based correspondent for Dawn with nearly two decades of experience in the field. He reports on socio-economic development, agriculture, and privatisation, as well as parliamentary committees.

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Sufi

Jun 18, 2019 09:49am

Like they will ever privatize them and what about schools and hospitals, why do tax payers money wasting upon billions of salaries of those employees where get nothing in return, if that money divert in form of subsidies on basic commodities and grands so every one can go to best private hospitals and schools (which eventually increase economic activity and standard due to competition among them) then life of common men will get some relief, but all parties have their workers in those departments and SOE, so no one will privatize them and without being passing that hurdle, our economy got now way to move forward.

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Liman Gashkori

Jun 18, 2019 10:09am

PSM will not be privatised because it cannot make a profit. People do not go into business to lose money. The only way to privatise PSM would be for the workers to buy it.

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Liman Gashkori

Jun 18, 2019 10:19am

There are only a few more competitive industries in the world than primary steel manufacturing. Lack of modernization and increased union wage demands brought Pakistan Steel Mills to a standstill. They ceased to be able to pay their creditors. It is not a business people are liable to jump into.

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Mansur Ul Haque

Jun 18, 2019 11:05am

Let's hope private party that takes steel mill will run it efficiently. There will be pressure from existing empoyees not for denationalization. It's hope another Ifftikhar Chaudhry not come this time that reverse denationalization.

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Bilal Kaifi

Jun 18, 2019 11:22am

pIA as well plz

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SHAHID SATTAR

Jun 18, 2019 11:36am

The land connected with the steel mills must be worth trillions of rupees today. Any sales to be effected must ensure that a fair price is paid for the same by the buyers without any hoodwinking by any body to cheat the country.

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Taimur

Jun 18, 2019 05:15pm

Wasn't it PTI which opposed privatization of Pakistan Steel?

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saksci

Jun 18, 2019 05:44pm

It is all talk nothing will happen; please put all these workers who are paid for doing nothing to cleanup the garbage in the city of Karachi. If they refuse due to union rule fire them this includes all management team too.

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