Korea-China consortium in talks to buy Pakistan Steel Mills

September 18, 2021

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The Privatization Commission met on Friday with a consortium of prominent Korean and Chinese investors on proposals to privatize Pakistan steel mill.

According to the Ministry of Privatization, it has organized several Road Shows with international and national investors to revitalize efforts for Pakistan’s steel mills privatization.

After the Road shows were concluded, a meeting was arranged between South Korean,Chinese Investors Consortium and representatives of Privatization Ministry. Federal Privatization Minister Muhammad Mian Soomro, Federal Secretary for Privatization, legal and Banking advisers and senior ministry officials responded to inquiries from potential investors in the meeting.

Pakistan’s steel mills have been dormant since 2015 and the government has proposed a feasible deal structure to privatize Pakistan’s steel mills – as government intends to sell 51% to 74% shareholding of newly carved out subsidiary of PSM namely Steel Corp.

After the issuance of the EOI, associations of prominent local and international investors responded; Privatization Ministry held Road shows between 13 to 23 September. To date, consortium of major investors from China, Korea and Russia have shown interest in investment opportunities in Pakistan in general and in steel mill in particular.

Federal Minister Muhammad Mian Soomro said at hte occasion: “We welcome foreign investment in Pakistan and, according to the Prime Minister, we will provide investors with every possible means / support and information. Privatization and operation of Pakistan’s steel mills at full capacity is the main Goal of this whole process, as its activation will benefit the national economy.

However, the staff of Pakistan Steel mills doesnt seem to be happy with the ongoing process. The Pakistan Steel Mill stakeholder group led by Mammar Khan (PSM employees / retired employees, contractors, dealers, suppliers and lenders) strongly objected and drew the PM’s attention to the recent shallow decision of the Privatization Committee to privatize 51 -74% of the share capital with the control of Steel Corp (Pvt) Limited, a 100% subsidiary of PSM. He mentioned that government hasn’t learned a single lesson from previous Privatization process of 2006. Government need to bring transparency in the process, he added.