Govt leases Pakistan Steel Mills to a ‘private’ company it owns

ISLAMABAD: The federal government has decided to lease 1229 acres of land, which is approximately equal to ten thousand kanals belonging to Pakistan Steel Mills (PSM), to Steel Corp. (Pvt.) Ltd – an entity entirely owned by the government of Pakistan.

The document available to the Hum Investigation Team (HIT), reveals that billions of rupees’ worth of plant, equipment, and an office complex spread over 1229 acres of land will be leased to Steel Corp (Pvt) Ltd. while the ownership will be retained by PSM itself.

“Only Steel Corp. is being privatised,” the document stated.

Meanwhile, PSM will continue to function under the administrative supervision of the Ministry of Industries and Production (MoI&P), and will also manage its assets, including the land, itself.

Read More: Pakistan Steel Mills closure cost $18 billion: Authorities

With regards to the privatisation of Steel Corp., the Privatisation Commission (PC) on August 31, 2021, invited Expressions of Interest (EOI) from prospective investors for the acquisition of majority equity stakes and management control of the newly incorporated entity.

In response, PC received interest from eight (08) foreign investors, consortiums, and entities, of which six (06) parties submitted their Statement of Qualification (SOQ) by the due date of December 15, 2021, and the PC Board on January 20, 2022, pre-qualified the four Qualified Bidders. Buyer-side due diligence is underway.

The privatisation process of Steel Corp. (Pvt.) Ltd. is being conducted in terms of the provisions of the PC Ordinance, 2000, and the rules and regulations made thereunder in a competitive and transparent manner.