Privatisation board to review PSM transaction structure

Published May 13, 2020
Minister says revival of Pakistan Steel Mills is government’s top priority to minimise losses being borne out of public exchequer. ⁠— Reuters/File
Minister says revival of Pakistan Steel Mills is government’s top priority to minimise losses being borne out of public exchequer. ⁠— Reuters/File

ISLAMABAD: The Privatisation Commission (PC) on Tuesday started the process of evaluating draft transaction structure for the privatisation of the Pakistan Steel Mills.

The details will be discussed by the transaction committee at its meeting on May 14.

Financial advisers hired by the PC have completed due diligence and reports received in this respect are under review by concerned stakeholders.

Based on due diligence, financial advisers formulated the draft transaction structure for inviting expression of interest from potential investors. Following the discussion on proposed transaction structure, it will be placed before the Board of Privatisation Commission and later to the Cabinet Committee on Privatisation for approval.

Privatisation Minister Muham­mad Mian Soomro chaired a meeting on Tuesday to review the privatisation programme with special focus on some of the priority transactions.

Speaking on the matter, Soomro said the revival of the Pakistan Steel Mills is government’s top priority to minimise losses being borne out of the public exchequer.

During the meeting, targets were also set for the FY2020-21. PC officials informed the minister that substantial progress has been made to conclude the transactions including the National Power Parks Management Company Limited, (NPPMCL), SME Bank, Jinnah Convention Centre, Services International Hotel (SIH) and sale of 28 properties within current fiscal year. However, the timelines for the transactions have been rescheduled due to the Covid-19.

However, a revised schedule has also been shared with the PM’s office. Despite the lockdown situation, transaction-related activities continued through technological means and pre-qualified bidders for the NPPMCL remained engaged and were provided with necessary information and assistance in completion of buyer side due diligence.

The meeting was informed that the auction of 28 properties owned or controlled by the federal government will be conducted as and when Covid-19 situation improves.

The due diligence reports of the Higher Electrical Complex’s transaction were being finalised and transaction structure was being developed by financial advisers.

Soomro impressed upon the concerned officials to keep up the pace and complete all requisite formalities leading to successful completion of transactions once market conditions improve.

Published in Dawn, May 13th, 2020

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