SANA MAHMOOD

ISLAMABAD (28 Jan., 2017): The Cabinet Committee on Privatization has indefinitely deferred the decision on the fate of Pakistan Steel and Oil & Gas Development Company (OGDCL) .

The five percent divestment of the government residual shareholding in OGDCL has also been suspended

It is pertinent to mention here that Finance Minister (maintaining that National Exchequer was suffering losses due to PS) has directed the shareholders to figure a way out to handle the situation.

Sources privy to the NewsPakistan.TV have insinuated that the current political state of affairs – with parties dagger drawn on the issue of Panama leaks – has forced the government to defer the said transaction.

RELEVANT PIECE PUBLISHED EARLIER

Lease out Pakistan Steel for Thirty Years: Privatization Commission Board’s Novel Solution

SANA MAHMOOD

ISLAMABAD (17 Jan., 2017): Ministry of Finance’s Privatization Commission (PC) Board, in a meeting held here today under the Minister of State for Privatization, consented to the suggestion to lease the Pakistan Steel (PS) out for thirty years.
It is up to the Cabinet Committee on Privatization to decide about the proposal’s fate.
PC, while opposing the selling off of PS assets, has proposed to give the plant to the future investor for (a maximum of) thirty years while retaining ownership of the land.
Federal Government, Lessee and PS will be parties in the contract on a revenue-sharing modus operandi.
The lessee will be provided a tax holiday for five years. So far two foreign (Chinese and Iranian) and one local parties have shown interest in the proposed leasing plan.
According to PC formula taking care of Rs. 166b liabilities Government would put forward separation proposal for some 5000 workers.
It is pertinent to mention here that during the present government’s reign (May 2013 to Jan., 2017) PS’s losses doubled. The workers are living a miserable life as they are not paid salaries on regular basis.