New company will run the Pakistan Steel Mills on lease

The Board of Privatisation Commission approved a plan to restructure the ailed Pakistan Steel Mills (PSM) at Karachi. According to the plan, the new company will be established to run the PSM on lease for maximum of thirty years. The board also decided not to sell assets and lands of the steel mills. The government of Pakistan will continue to hold the assets and lands. The ownership of the steel mills will not be changed and only plants and its machinery will be handed over to the new company.

The financial advisor appointed to restructure the ailed mills suggested to the board to establish new company and hand over operations to the new company. If the cabinet committee on privatisation chaired by finance minister Ishaq Dar, approved the proposals then the new company will be immediately established to hand over the operations.

The government will take over all the liabilities and new company will get clean balance sheet. PSM is facing severe financial problems for many years. Even the salaries of the workers being paid by the federal government. The workers stage protests to get the wages.

The workers and unions in the past furiously opposed the privatisation of steel mills. The workers and unions gave no reaction to the new proposals so far.