Mohsin Siddiqui (Chief Reporter)
Sindh government has given its consent for the utilization of Pakistan Steel Mills (PSM) land by the federal government to establish an Export Processing Zone (EPZ), as reported by Business Recorder.
The Apex Committee (AC) of the Special Investment Facilitation Council (SIFC) has purportedly instructed the Chief Secretary of Sindh to seek necessary approval from the Provincial Cabinet to change the purpose of the grant/lease. The Ministry of Industries and Production is set to initiate work on establishing the EPZ on the allocated land.
Quoting sources, it was revealed that the Board expressed disappointment over the failure of the four-year-long privatization project of Pakistan Steel, citing considerable resources and efforts expended without yielding any results. This failure not only resulted in significant financial losses but also negatively impacted the morale of the local community and the nation at large.
While the Privatization Commission attributed the delay in privatization to poor economic conditions, several other issues, including the asset’s condition at the time of sale, structural concerns, decision-making processes, and the capacity of involved entities, require formal review. Recommendations for reforms are deemed necessary to enhance the success rate of future privatization endeavors.
Pakistan Steel faces substantial liabilities, with three major institutional creditors—SSGC, Government of Pakistan, and National Bank of Pakistan—imposing high interest rates on debts, contributing approximately Rs. 20 billion annually to the corporation’s losses.
Despite numerous attempts to negotiate settlements with creditors, liabilities from the closure of the mills in 2015 remain unresolved. The outstanding principal and interest owed by PSM to the Government of Pakistan amount to Rs. 102 billion and Rs. 48 billion, respectively. Similarly, the National Bank of Pakistan is owed Rs. 38 billion in principal and Rs. 38 billion in interest, while SSGC is owed Rs. 23 billion in principal, along with a disputed amount of LPS.
