Pakistan has decided to call-off the proposed plan to offer Pakistan Steel Mills’ (PSM) industrial units exclusively to Chinese investors through the China Pakistan Economic Corridor (CPEC) framework. The government of Pakistan is expected to invite competitive bids for the company’s assets.
China was expected to revive Pakistan’s ailing steel sector and finance PSM’s revival. Pakistan Steel Mills has been closed for almost five years as demand for finished steel is low on lack of infrastructure activity and a slow down in the economy.
The government has spent PKR355mn ($2.30mn) to pay salaries to the loss-making steelmaker’s employees. To overcome the monetary crunch the government has backed off from their decision to offer assets of PSM to Chinese investors.