Meeting Co-Chaired by Energy & Privatisation Ministers, to Discuss PSM And HEC Transactions

A meeting was held under the joint chairmanship of Federal Minister for Privatisation Mohammedmian Soomro and Federal Minister for Energy Hammad Azhar to discuss matters related to the transaction of PSM and HEC. In the meeting, Federal Secretaries of Privatisation, Power Division, Petroleum Division, Industries and the representatives of the Ministry of Industries & Production, Finance, SSGCL, HEC and Financial Advisors were present.

It was briefed that the transaction of Pakistan Steel Mills is at advanced stage along with the status of corporate actions to be completed prior to the revival of PSMC.  The major focus was on the availability of utility connections to the newly formed subsidiary of PSMC, its liabilities towards Sui Southern Company and issuance of NOC from Sui Southern Gas Company Limited, which is mandatory for seeking approval for scheme of arrangement (SOA) from SECP. Sui Southern was asked to take up the matter in its Board meeting and issue the requisite NOC so that the process of privatisation/revival of PSM could be completed without hindrance in stipulated time. 

 The matter regarding the extension of the validity of type testing licence for HEC by Power Division was also discussed. The Federal Minister Mohammedmian Soomro said that this extension would incentivize the potential buyer(s) of HEC and also would provide them a ground to start manufacturing the transformers without any break. It was proposed that the subject matter would be taken up with National Transmission & Dispatch Company Limited (NTDC) and after exhausting this option it would be taken to CCoP for clear directions, before the bidding date of HEC. 

Later on, Federal Minister for Privatisation also chaired a meeting to review the progress in various ongoing transactions. The Minister was briefed that the bidding of Heavy Electrical Complex is expected in mid-January, 2022. He was also briefed that top international Investors are pre-qualified for Pakistan Steel Mills (PSM) and a report will be formulated for the approval pre-qualification committee and PC Board. Regarding National Power Parks Management Company Limited (NPPMCL) it was briefed that the, debt-refinancing process will be started soon after approval of CCoP. The Federal Minister was also briefed about the updated status of House Building Finance Corporation Limited (HBFCL), First Women Bank Limited (FWBL), Pak re-insurance Limited (PRCL), HEC and DISCOs.