ISLAMABAD, Dec 12: The government has directed the Privatization Commission to ensure that the disinvestment of Pakistan Steel is done by the middle of January 2006 positively with a view to making it efficient and more profitable.

Sources at the Privatization Commission told Dawn here on Monday that government officials would be holding a meeting with trade union leaders of Pakistan Steel on December 19 in order to remove their apprehensions about the proposed privatization of the organization. Earlier, both the sides met on December 10 but could not resolve differences.

Prime Minister Shaukat Aziz, the sources said, had asked the Privatization Commission to hold the bidding of the mills by January 15, 2006 as there was no question of delaying the transaction for which nine parties had already pre-qualified.

The due diligence of truncation has been completed and data room established to privatize the mighty mills and that information memorandum was being issued in a day or so about the proposed deal. However, the sources said that the Chinese interested in the deal had sought more time to take part in the privatization.

The Peoples Workers Union of Pakistan Steel on Dec 10 sent a letter to Minister for Privatization and Investment Dr Abdul Hafeez Sheikh, suggesting him not to privatize the mills.

According to the letter, a copy of which was made available to Dawn, the management of Pakistan Steel had played havoc with the plant and victimized the employees who raised voice against unwarranted and illegal acts of corruption in the organization.

“We, the CBA, understand and want to make it clear that the privatization of the national strategic asset of the country is unjustified and is a sponsored campaign against the development of the country. Before the process of privatization, the management as well as the government have not taken into confidence the employees of the mills who are working for smoothly turning the wheel of the industry to compete with monopolistic importers.”

It also said that a memorandum of understanding (MoU) was signed during the visit of President Gen Pervez Musharraf to Moscow in February 2003 to enhance the mills’ production capacity from 1.1 million to 1.5 million tons. In 2003, a delegation of PS officials visited Russia and China to enhance the production capacity of the plant.

After the death of former PS chairman Muhammad Afzal Khan, the present management continued visits again in 2004 but wasted time and money and paid no heed to the plant. From March 2005, the present management very cleverly and technically started the campaign to deteriorate the plant to make it feasible for the strategic potential buyer and the ministry of industries and production played the role of a silent spectator.

“We would like that we be heard before the unforeseen situation arise in the hasty privatization of the mills. The bidding process may be stopped till that time all the stakeholders are not satisfied,” the union leaders demanded.