Pakistan’s Cabinet Committee of Privatisation (CCoP) has approved the privatization of Pakistan Steel Mill Corporation’s (PSMC) core operating assets following the recommendation of the Privatization Committee.
The privatization which will create employment and reduce debt is expected to ease the pressure on the country’s economy as some state-owned enterprises could not contribute to the national treasury. The government also seeks to revive International Monetary Fund’s $6 billion loan program for Pakistan through privatizations.
In the first phase, the mill will be restarted to reach its full production capacity within one and a half year, while in the second phase, its production capacity will be increased to three million mt. The privatization phases were estimated to cost $800 million.
In 2015, the mill shut down its furnaces and it consumed PKR200 billion ($1.25 billion) of state funds since 2008. The Pakistani government had to grant PKR400 million ($2.49 million) every year for the mill’s employees’ salaries.