Pak Steel (PS) IPO under consideration

Various options are now being considered for the privatisation of Pakistan Steel Mills (PS), which includes listing at the stock exchanges of the country, said Minister for Industries and Production Jehangir Khan Tareen on Thursday.

Speaking to reporters during his visit to the mills, he said the government would privatise the entity in phases, which could include initial public offering of 10 per cent shares. “The government will privatise the PS, but it is yet to be decided how it will be done,” he said.

He said the mills had faced loss of production during last year, but now the situation is normal. He added that Rs4-5 billion would be spent on the improvement of its infrastructure so that it could be privatised at a better price. He said the PS had funds to finance the works and that it did not need any grant or loan.

He said the coke oven battery had been repaired locally, but foreign experts’ help would also be sought for the purpose. He said the PS would be privatised in a transparent manner in open bidding after the judgment of Supreme Court and market forces would determine its value.

In response to a query about industrial growth, he said it had been high in the last three years, but now because of a tight monetary policy the growth rate has fallen.

However, it is still in the double digits, he added.

Talking about automobile industry, he said a long-term policy for at least five years was being prepared for the sector.

The policy to import used cars is now being tightened after drop in premiums and due to ballooning trade deficit.

Earlier, the Chairman of PS, Maj Gen Muhammad Javed briefed the minister about the current performance of the mills, statistics of production and profits, future planning and downstream industry.

He suggested that mills’ land, which is to be used for downstream industry, should be allotted to serious industrialists within this year. He said that the organisation would generate an income of Rs1 billion by allotting plots to different sectors.

Later, the minister visited the coke oven by-product plant battery I and II. Secretary industries Shahab Khwaja was also present on the occasion.

Source: The News