MSC Mulls Pakistan Steel Mills’ Acquisition

A 10-member delegation of Mobarakeh Steel Company of Iran is in Karachi to examine the possibility of acquiring Pakistan Steel Mills, Pakistan Today reported.

Secretary of Industries and Production Khizer Hayat Gondal has informed a parliamentary panel that the government is determined to privatize the PSM but it is facing difficulties in finding prospective buyers in the market.

Business Recorder reported that the accounts of PSM have not been audited for the last three years and it is difficult for auditors to evaluate the actual price of the national asset.

According to Gondal, the accumulated loss up to September 30, 2016, has been calculated to be Rs167.31 billion ($1.6 billion). Total liabilities of the corporation in this period reached Rs177.77 billion ($1.7 billion), whereas total assets amount to Rs220 billion ($2.1 billion).

The privatization process of PSM came to the fore after a decision by Pakistan’s Finance Minister shaq Dar on July 4, 2016. The auditors are of the view that for the purpose of PSM’s privatization, financial due diligence should be completed first.

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.