Foreign investors interested to take over steel mills

The Chinese and Irani companies showing interest in the lease of  Pakistan Steel Mills Karachi. One Pakistani business group based in Karachi is also showing interest. The government has already decided to  take the total liabilities of 300 billion rupees. The company who run the steel mills will also get tax relief on with holding tax for five years. According to some media reports, the Karachi based business group is more likely to take over the steel mills. This group has long experience to run the steel industry. But it is not yet clear that this group will get the lease alone or form a consortium with other local or international company.

One thing is clear that the government has finally decided to hand over the steel mills to private sector. This steel plant was donated by the Russians in early 1970s as a gift to Pakistani people. Zulifqar Ali Bhutto was the prime minister at the time and took personal interest in the completion of steel mill. Russians also promised to increase the capacity of the mill but Pakistani government never shown any interest since Bhutto government was toppled by a military coup in 1977.

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