Pak Steel Plant May Be Leased to Iran

The Pakistan government has announced its decision to lease Pakistan Steel Mills to a Chinese or Iranian company amid the absence of an investor needed to complete the privatization. Privatization Commission Chairman Mohammad Zubair stated to the Pakistan Senate Standing Committee on Finance that PSM’s losses reached $1.62 billion, the local media The News reported. It is a devastating growth compared to last year’s $1.1 billion when the talks of privatization were just starting. The government is eager to restructure the mill and restart production as soon as possible. PSM has been out of commission since the summer of 2015 due to the suspension of gas supply from Sui Southern Gas Company as a result of unpaid debts, Metal Expert reported. Pakistan Steel Mills, also known as Pak Steels, is a state-owned producer of the long rolled steel and heavy metal products and entities in Pakistan. Headquartered in Karachi, Sindh Province, PSM is the current largest industrial mega-corporation having a production capacity of 1.1—5 million tons of steel and iron foundries.