KARACHI: Three out of four parties from China that qualified to potentially acquire Pakistan Steel Mills (PSM) are no longer interested in the transaction, Pakistan’s caretaker privatization minister said on Thursday.
Pakistan’s caretaker government moved on Thursday to improve governance at state-owned companies and earmarked 10 for privatization or turnaround efforts, as it strives to deliver reforms under a $3 billion International Monetary Fund bailout.
Under the IMF loan deal, critical in averting a sovereign debt default, state-owned entities (SOEs) whose losses are burning a hole in government finances will need stronger governance.
As of 2020, the accumulated losses for SOEs amounted to 500 billion rupees ($1.74 billion).
“We are now confronted with a single bidder situation for Pakistan Steel Mills,” Pakistan’s caretaker privitization minister, Fawad Hasan Fawad. said on Thursday.
He said that prior to COVID-19, there were four companies that were interested and qualified to bid for Pakistan Steel Mills (PSM), but three of them have backed out for a variety of reasons including global demand for steel.
Fawad added that the caretaker government was in talks with the financial planner appointed for the transaction; and that only PSM’s operational assets were up for sale.
Pakistan has also been discussing outsourcing operations of several of its state-owned assets to outside companies.
In March, it kicked off outsourcing of operations and land assets at three major airports to be run under a public private partnership, a move to generate foreign exchange reserves for its ailing economy.
The government has budgeted only about 15 billion Pakistani rupees ($52.42 million) in receipts from a stalled privatization process in its budget for the fiscal year 2024.
Caretaker Finance Minister Shamshad Akhtar told reporters under the government’s draft policy on SOEs, the appointment of independent directors will be through a nomination process, adding that no ministry would be able to issue directives to SOEs in order to improve governance.
($1 = 286.9500 Pakistani rupees)
Only one bidder left for Pakistan Steel Mills — privatization minister
https://arab.news/6usq6
Only one bidder left for Pakistan Steel Mills — privatization minister
- Pakistan’s caretaker government has earmarked 10 state-owned companies for privatization or turnaround efforts
- As of 2020, accumulated losses for state-owned entities amounted to $1.74 billion, caretaker finance minister says
Pakistan PM orders action against fuel hoarding amid Iran conflict supply fears
- Sharif asks authorities to shut down petrol pumps involved in any attempt to create artificial shortages
- Government says it holds adequate fuel stocks despite shipping risks as Strait of Hormuz tensions rise
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday ordered authorities to take strict action against fuel hoarders and shut down petrol pumps involved in any attempt to create artificial shortages, as anxiety grows over potential supply disruptions from the widening conflict involving Iran.
Sharif issued the directive during a high-level meeting on petroleum supplies, where officials briefed him that Pakistan currently holds sufficient fuel reserves to meet domestic demand despite the volatile regional situation.
The move comes as Pakistan steps up contingency measures following fears of supply disruptions linked to the escalating conflict involving Iran, the United States and Israel.
The concerns stem partly from disruptions in tanker traffic after the Strait of Hormuz — a key global oil chokepoint between Iran and Oman through which much of Pakistan’s imported crude typically transits — was shut following rising hostilities in the Gulf.
“The prime minister directed provincial governments to take strict legal action against hoarders of petroleum products,” Sharif’s office said in a statement after the meeting.
“Any petrol pump involved in the reprehensible practice of creating artificial shortages should be immediately shut down, its license revoked and legal action initiated,” it added.
Earlier this week, Pakistan’s Oil and Gas Regulatory Authority (OGRA) allowed oil marketing companies to temporarily regulate supplies to retail outlets to discourage hoarding and maintain stability in fuel distribution.
Sharif instructed the petroleum minister to visit provinces and coordinate with their administrations to develop a strategy for conserving petroleum products and ensuring their uninterrupted supply to the public.
The prime minister further ordered the creation of a digital dashboard to monitor the movement of petroleum products and share real-time data with provincial authorities to improve oversight of fuel transportation and distribution.
