An offer of $1-1.5 billion has been made to the government of Pakistan to buy the majority of shares in Pakistan Steel Mills (PSMC).
In this context, four Chinese enterprises have visited Pakistan and engaged with the appropriate authorities.
According to sources, the government has already given a new business that is owned by the state-run steel maker over 6,000 acres of the total area operated by PSMC under its land lease agreements.
Earlier, the Sindh government had a few concerns with the privatization of PSMC under the previous government. Now that a member of the coalition government is leading the Privatization Commission, assuming everything goes according to plan, the sale of PSMC shares to foreign investors should go off without a hitch.
Since last year, the steel mills’ grounds have welcomed nearly a dozen pre-qualified foreign investment enterprises.
The privatization of Pakistan Steel Mills, in the opinion of higher-ups in the government, is essential for the country’s economic development. The strategy aims to increase foreign direct investment, create jobs, and provide access to steel that will be exported from Pakistan’s strategic geographic location to support local infrastructure development.
After the transaction is finished, it’s anticipated that PSMC’s balance sheet will be cleared and its losses will be transferred to another business. Additionally, it has been predicted that the corporation’s steel mill will produce one million tonnes in the first year, two million tonnes in the second year, and three million tonnes in the third year following privatization.
A group of domestic and international investors made the highest offers for 75% interest in the Pakistan Steel Mills privatization in 2006, offering $362 million. The procedure was declared void in a Supreme Court letter.