Privatisation Commission (PC) has reportedly decided to reconstitute Pakistan Steel Mills” (PSM) Board. In October 2013, Federal Government had reconstituted PSM after getting formal approval of the Prime Minister Nawaz Sharif. The composition of BoD was as follows:
(i) Secretary Industries and Production (Chairman); (ii) Secretary Privatisation (Member); (iii) Additional Secretary (Corporate Finance), Finance Division (Member); (iv) CEO, PSM (Member); (v) Asad Ali Khan, Chartered Accountant (Member); (vi) Engineer, Jabbar Memon (Member); (vii) Shah M. Saad Hussain, HRM professional (Member); (viii) Sohail P. Ahmad, corporate sector professional (Member); and (ix) Ahmad Alman Aslam, banker/corporate restructuring professional.
A three-member committee of the Board prepared the restructuring and privatisation plan and presented it before the Economic Co-ordination Committee (ECC) of Cabinet, which was rejected. Later on, Secretary Industries and Production himself prepared a plan encompassing five options which was also turned down. The sources said, Federal Government believes that some of the members of incumbent Board and its Chairman are not sufficiently competent to prepare an effective restructuring and privatisation plan due to which they are being replaced.
When contacted, Chairman Privatisation Commission, Muhammad Zubair confirmed to Business Recorder that PSM Board is being reconstituted. “We are in the process of reconstituting the PSM Board. A couple of members and Chairman are being replaced. This exercise will be completed next week,” he added.
Zubair, however, did not disclose the names of the new Chairman and members of PSM Board but stated that well reputed and experienced people are being taken on Board. In reply to a question, he said, the new Chairman might not be aware of his nomination on the Board. National Assembly Standing Committee on Industries and Production, headed by Asad Umar, has directed the Privatisation Commission to submit the PSM Privatisation plan to the committee prior to seeking ECC approval.
The committee was informed that PSM”s losses have reached Rs 103 billion whereas its assets are estimated at Rs 89 billion. Some members of the committee including Qaisar Ahmad Sheikh argue that the Mills cannot be revived and whatever is claimed by the Acting CEO is without merit. The tenure of Lieutenant General Qayyum (retired) for Chairman PSM was termed ”best times for the entity.”