KARACHI: Federal Minister for Industries and Production Ghulam Murtaza Khan Jatoi on Monday said Pakistan Steel Mills cannot stand on its feet and can become a viable enterprise only if over Rs80 billions were provided at a time for its repair, replacement, modernisation and for other routine expenses.
Another Rs1 billion would be needed for its expansion to gain 1.5 million tones per year production capacity. This would be difficult for the government to inject such a huge amount, he said.
The minister was speaking during his meeting with the leadership and members of Karachi Chamber of Commerce and Industry (KCCI) here at the chamber.
KCCI’s President Younas M Bashir, Chairman of Businessmen Group (BMG) in KCCI and former president KCCI Siraj Kassam Teli, KCCI’s Senior Vice President Zia Ahmed Khan, Vice President Chaudhry Naeem Sharif, former president Iftikhar Vohra, and members of KCCI Managing Committee were present.
Federal Minister for Industries and Production informed that for privatizing Pakistan Steel Mills, the Privatisation Commission had come up with two models: selling 26 percent or 51 percent shares to a strategic partner/group.
Two groups of companies from China had shown their interest in purchasing Pakistan Steel. One was willing to buy PSM outrightly and another offered to become a strategic partner with Pakistan government, he said.
Jatoi said the federal government was weighing all the offers in this regard including that from Sindh Government and the decision would be taken on merit and practicality.
He was critical that during last government of Pakistan People’s Party, Pakistan Steel was very badly handled and it made huge losses.
In 2008, it was very profitable organisation, he said.