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The
process of privatization of PSMC stands vitiated by
act of omission and commissions on the part of certain
state functionaries reflecting violation of mandatory
provisions of law and the rules framed hereunder which
adversely affected the decisions qua pre qualification
of a member of the successful consortium (Mr. Arif
Habib), valuation of the project and the final terms
offered to the successful consortium which were not in
accord with the initial public offering given through
advertisement.
--Supreme Court of Pakistan in Steel Mill Case
The
Supreme Court of Pakistan in its historic judgment
delivered in a public interest litigation has declared
the sale of 75% shares of Pakistan Steel Mills as void
and of no legal effect as the process of privatization
of PSMC stands vitiated by acts of omission and
commissions on the part of certain state functionaries
reflecting violation of mandatory provisions of law
and the rules framed hereunder which adversely
affected the decisions qua pre qualification of a
member of the successful consortium (Mr. Arif Habib),
valuation of the project and the final terms offered
to the successful consortium with the initial public
offering given through advertisement.
Pakistan
Steel Mills Corporation (Pvt.) Ltd (the PSMC) was
inaugurated in 1985 with the technical and financial
assistance of the former Soviet Union and owns and
operates an integrated steel manufacturing plant with
the design capacity of 1.1 million tons per annum.
The
steel demand in Pakistan is approximately 4.5 million
tones per annum. PSMC meets approximately the domestic
demand of steel products. The shortfall is met through
a large number of small private sector units in
Pakistan and through imports. PSMC has a chequered
history and has been plagued by mismanagement,
corruption and overstaffing. It has been functioning
at a lower capacity and with heavy losses in some
years.
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