The Government of Pakistan has received a $1-1.5 billion offer to buy a majority stake in PSMC Pakistan Steel Works. According to local media reports, four Chinese companies met with the relevant authorities last week about the matter.
The Government of Pakistan has had several unsuccessful attempts to privatize PSMC in the past. Currently, the Privatization Commission is chaired by a member of the coalition regime, and with timely planning, the sale of PSMC shares to international investors is expected to be completed smoothly and without delay.
Since last year, PSMC has hosted nearly half a dozen pre-qualified international investment firms.
In Islamabad, the privatization of Pakistani steel mills is considered vital to Pakistan's economic growth. The plan is aimed not only at foreign direct investment and job creation, but also at building the manufacturing capacity needed to support domestic infrastructure development with access to steel destined for export from Pakistan's strategic geographic location.
PSMC's balance sheet is expected to be cleared and its losses transferred to another company after the transaction is completed. In addition, after privatization, the production of the corporation's steel mills is estimated at one million tons in the first year, two million tons in the second year, and three million tons in the third year.