KARACHI: The Pakistan Steel Mills (PSM) is likely to activate independent units for steel fabrication for power sector and China-Pakistan Economic Corridor (CPEC) sub-contracting.
The Board of Directors of PSM instructed management to examine the possibility of manufacturing coke from the present batteries by invoking competitive bidding process so that investors provide the raw material for value additions on the terms and condition to be agreed as the case be for win-win situation and as well as to generate some liquidity by the available and operating units of PSM.
Also, the board also discussed the establishment of Special Economic Zone (SEZ) near PSM in context of CPEC. After thorough discussion Board advised to get the land valuated on immediate basis so that the same can be offered for the purpose on earliest basis in order to activate the SEZ.
In view of PSM being enlisted for privatization for early harvest, the discussion also focused as to the need on simultaneous putting in efforts of finding solutions towards its likely rehabilitation and revival of operation of PSM including the mode and manner of financing and considering offers from parties in this respect.
The Board agreed to continue working on this business development plan by integrating the experiences of last bailout packages so that new factors and references by eliminating the reasons of past non-achievements of targets out of previous bailout packages are also well considered in development of the business plan. The previous experiences of non achievements of targets of bailout packages are well considered in structuring the Resurgence of Pakistan Steel Mills Business Plan. The Board also agreed that PSM should capitalize the position that it contributes a greater percentage number in the growth of large scale manufacturing growth number for manufacturing GDP, which may merit the considered view of developing business plan. It also took note that even SBP has also mentioned in its report that due to complete halt of operation in Pakistan Steel Mills, the LSM growth was recorded lower due to no contribution of manufacturing production by Pakistan Steel Mills. The Board after detailed discussion agreed to continue structuring the business development plan by considering the maximum available information and records with PSM by which PSM management had registered reasons for not meeting with the targets of previous bailout packages which has not only been badly perceived at large but also remains discouraging for any future government support in this respect. It was finally agreed that a sale-able comprehensive business development plan if is structured may carry the value addition for likely consideration of government of Pakistan.
The Board Committee constituted for National Industrial Park affairs NIP provided information through minuted position and as well as explained the reasons for its go slow to the resolution. After detailed discussion in the Board, the Board gave go ahead for earliest resolution of the issue by bench marking the price given by the financial advisors appointed by privatization commission in order to close this issue so that predictable economic activities are ensured for the investors in the National Industrial Park. The Board also desired for earliest resolution and closing of this pending issue with NIP. The case faced by Pakistan Steel Mills in the Supreme Court of British Columbia was discussed in respect of M/s Sociedede-de-Fomento Industrial Private Limited v/s Pakistan Steel Mills Corporation Pvt Ltd. The Board authorized CEO in assistance of the finance department to take necessary steps in the interest of PSM in the most befitting manner in order to try to save interest of PSM as much as it would be possible through effective consultation and understanding of the ongoing and earlier issues in this respect.
The preservation of coke oven batteries and leaving of experts of M/s. Concord were also discussed and Board advised management that abundant caution should be taken by the PSM engineers and management in preserving the coke oven battery and as well as continue to engage with the foreign company to bring back their experts for continuing with the guarantee and ensuring the preservation of the most important installation of Pakistan Steel Mills in order to avoid any mishap.
The Board also took information in respect of litigation with M/ Sesa Goa Ltd, India before international court of arbitration and advised the management to apprehend the outcomes and make strategy as how to handle this case for which the final award by international court of arbitration would be announced at the end of July 2017. The information was shared with the Board in respect of background of additional custom duty imposed by Indian Govt on export of Iron Ore from M/s Sessa Goa Ltd, India, which led to the development of litigation before International Court of Arbitration.
