Chinese, Russian, and South Korean investors Interested in Revival of Pakistan Steel Mills

These potential investors and interested parties are from South Korea, China, and Russia.

3
(Reuters/File)

 

Foreign investors from China, Russia, and South Korea are interested in the revival of Pakistan Steel Mills (PSM), which is closed since 2015.

A Soviet-built machine at Pakistan Steel Mills (PSM).

According to the media reports, meetings are being held with potential investors for the purpose of the Mill’s revival almost daily.

These potential investors and interested parties are from South Korea, China, and Russia.

The flags of Pakistan, Russia, and China.

The Federal Minister for Privatisation, Mohammed Mian Soomro, chaired a meeting regarding the transaction updates, legal matters and e-office in the Ministry.

The Privatisation Federal Secretary, Rizwan Malik, and other senior officers of the Ministry and Privatisation Commission also attended the meeting.

The coke oven plant inside PSM (Pakistan Steel Mills).

The Federal Minister was briefed about the detailed meetings held with potential investors regarding the revival of Pakistan Steel Mills (PSM).

 

The Minister was also informed that the land valuation of PSM will be completed by the end of January and that the Expression of Interest (EOIs) regarding PSM will be sought in March this year.

Since its closure in 2015, the loans and liabilities of PSM have climbed to ₨. 230 billion, and the amassed losses of PSM amount to ₨. 200 billion.

The iron making department inside PSM (Pakistan Steel Mills).

The federal government also has to pay ₨. 750 million for pensions and salaries of the PSM employees.

Despite being non-operational, the federal government has paid ₨. 35 billion in salaries since June 2013.

Nevertheless, now the government has decided to lay off the entire workforce of the Mill.

In the first phase of this proposal, around 4,544 employees of PSM have already been terminated.

Until now, the successive governments had continued to pay the salaries and retirement perks of the non-productive workforce of the Mill.

What are your views on this? Share with us in the comments below.

  • Apparently they are hiring incompetent people for the management and firing skilled labor force. For example: CEO Brigadier(R) Shuja’s only experience is army and this too applied on Director Admin Col(R) Tariq Khan. No Audit or investigation has ever been done on how the mill reached to this breaking point. While if they truly wanted to run the mill and not compensating the PTI allies the govt should have gone for the Russian govt offer, who offered complete rehabilitation of mill plus increase in production in two year span with over 8 Billion dollars investment. The govt is portraying that it is paying employees salaries without work and they are the evil force while the truth is it is the Govt of Pakistan who hire and fire the management of PSM. The very management who take decisions on everything, Real culprits are appointed by the govt itself but they blame the employees. the average salary of a worker after 10 years of work is 25-30 thousand rupees and the current salary of CEO is 19 lac rupees/month which is also increased this month (Jan-21). PTI govt actually increased the losses of PSM by various means.

    • Stop lying patwari government is trying to fix you 40 years corrupt rulers No shame like there corrupt leaders lie daily

  • South Korea will be a better choice strategically. More quality for less price and Pakistan enjoys stable relations with South Korea. On the other hand, China will be the second best strategic option to go for.


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