October 30, 2013
Pakistan Steel Mills (PSM) Board of Directors (BoD) on Tuesday constituted a three-member committee to suggest a way forward for the future of the mill, keeping on mind that the government will not provide a single penny except salaries to the employees, sources close to Secretary Industries told Business Recorder. The three-member committee will comprise Shah M Saad Hussain, Asad Ali Khan and Engineer Abdul Jabbar Memon.
The CEO and the CFO PSM have been directed to extend all possible support to the committee in finalisation of future strategy for the PSM. The committee will submit its report within a week. The next meeting of the Board will be held on Tuesday (November 5). This was the first meeting of the mills revamped board. Secretary Industries and Production, Shafqat Naghmi requested the board members to help the three-member committee, so that a consensus strategy could be formulated.
Sources said the government is not willing to invest further in the “dead” entity which is on top of the privatisation list already presented to the International Monetary Fund (IMF). “The committee has been assigned to evaluate the proposals of three private parties and PMS”s housing scheme plan carefully,” the sources continued.
Secretary Industries who is also the chairman of the reconstituted Board was of the view that privatisation process will take at least 18 months and if the mill continued operating on less than 10 per CAPU, the loss will be much higher. Secretary Privatisation Amjad Ali Khan said the mill is not a profitable entity and Rs 90-100 billion have already been sunk and the mill now depends on the government to stay alive. The PSM management also presented a bailout package to the Board to bring the entity out of financial crisis.
The proposed bailout package is as follows: MoI&P presented a summary on 22nd August 2013 requesting financial assistance for PSM amounting to Rs 28.49 billion, including Rs 7.2 billion as financial charges and Rs 5.8 billion payable to SSGC. The ECC directed MoI&P to revisit the matter in consultation with all stakeholders taking a holistic view and to bring a workable plan in the next meeting. Courtesy BR
PSM, Pakistan Steel Mills (PSM),