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
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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
Security forces kill nine Pakistani Taliban militants in restive northwest, military says
- The militants were killed in separate operations in Khyber Pakhtunkhwa's Dera Ismail Khan and Bannu districts
- Pakistan this week summoned Afghanistan’s deputy head of mission to demand action against the Pakistani Taliban
ISLAMABAD: Pakistan security forces have killed nine Pakistani Taliban militants in two separate engagements in the northwestern Khyber Pakhtunkhwa (KP) province, the military said on Sunday, amid a surge in militancy in the region bordering Afghanistan.
Four militants were killed in an intelligence-based operation in KP's Dera Ismail Khan, while five other Pakistani Taliban members were gunned in an exchange of fire with security forces in the Bannu district, according to the Inter-Services Public Relations (ISPR), the military's media wing.
Weapons and ammunition were also recovered from the deceased "Indian-sponsored" militants, who remained actively involved in numerous activities against security forces and law enforcement agencies and target killing of civilians. There was no immediate response from India to the statement.
"Sanitization operations are being conducted to eliminate any other Indian sponsored kharja [militant] found in the area," the ISPR said in a statement. "Pakistan will continue at full pace to wipe out menace of foreign sponsored and supported terrorism from the country."
KP has seen a surge in militancy in recent years, with the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), and other militant groups frequently targeting security forces convoys and check-posts, besides targeted killings and kidnappings of law enforcers and government officials.
Pakistan this week summoned Afghanistan’s deputy head of mission and demanded “decisive action” against the TTP after four Pakistani soldiers were killed in an attack on a military camp in KP’s North Waziristan district that also killed four assailants, according to the Pakistani foreign office.
Islamabad has long accused Kabul of allowing its soil and India of backing militant groups, including the TTP, for attacks against Pakistan. Kabul and New Delhi have consistently denied this.
The uptick in militant violence triggered fierce clashes between Pakistan and Afghanistan in Oct. The two countries agreed to a ceasefire in Doha on Oct. 19, but tensions remain high between the neighbors.
