ISLAMABAD: The Board of Privatisation Commission (PC) on Friday approved documents pertaining to the pre-qualification criteria of investors for the revival of Pakistan Steel Mills Corporation (PSMC).

The board meeting, chaired by Minister for Privatisation Mohammadmian Soomro, approved the Request for Statement of Qualification (RSOQ) and Expression of Interest (EOI) documents. In light of the federal cabinet’s decision, PC will invite EOI after filing of scheme arrangement (SOA) by Pakistan Steel Mills with the Securities & Exchange Commission of Pakistan.

Mr Soomro said the PC has come a long way, with a focused objective to revive the largest industrial unit of Pakistan, which could run in its best capacity and contribute to the national economy.

In view of the decision of the cabinet committee, EOI for investors would be invited for the purpose the pre-qualification of investors. The draft document containing eligibility criteria along with basis of disqualification for the potential investors was placed before the PC Board for deliberation and approval.

Country’s largest industrial unit lying non-functional since 2015

According to the approved transaction features approved by the Cabinet Committee on Privatisation (CCoP), the identified core operating assets would be transferred to the new subsidiary owned by PSMC named Steel Corp (Pvt) Ltd, and then the divestment of equity stakes of the subsidiary will be 51 to 74 per cent through bidding process.

The revival of PSM is one of the important objectives of privatisation plan. The mill is not working since 2015 while the government has planned to bring foreign and domestic investors for the revival of the largest industrial corporation of Pakistan. There have been consecutive meetings with the stakeholders and ministries to resolve the issues, a press release issued by the PC following the board meeting said.

The PC Board also recommended the highest bidder – Faisal Town Pvt Ltd – for Service International Hotel (SIH) along with the offered bid which is higher than the reserved price. The letter of acceptance to the successful bidder will be issued after seeking approval of the CCoP and the federal cabinet.

The board was informed that great efforts were made by the financial advisers who reached out maximum potential investors but due to resource mobilisation, liquidity constraints and overall macro-economic outlook in the backdrop of Covid-19 pandemic, the response of the potential bidders appears lacklustre.

The Ministry of Privatisation widely publicised open auction of SIH transactions in all the leading newspapers. Social and electronic media were also used for the wider circulation to make the process open and transparent.

In pursuance of the approval of PC Board, twelve pre-qualified parties for Jinnah Convention Centre have been notified for participating in the future steps of bidding, the commission added.

Published in Dawn, August 28th, 2021