3 Chinese firms shortlisted for reviving Pakistan's loss making steel mills unit
May 20, 2022
Islamabad [Pakistan], May 20 : Pakistan government has finalised three Chinese companies as pre-qualified bidders who will contest for winning stakes of up to 74 per cent in loss-making Pakistan Steel Mills Corporation (PSMC) to revive the country's largest non-functional industrial unit.
The decision was taken on Thursday during a meeting held by Federal Minister for Privatisation Mir Abid Hussain Bhayo along with pre-qualified bidders here.
The three Chinese companies include Bao Steel Group Xinjiang Bayi Iron & Steel Co. Ltd, (China), Tangshan Donghua Iron and Steel Enterprise Group Co. Ltd (China), and Maanshan Iron and Steel Co. Ltd.
Earlier, six companies from Russia and China had submitted their documents to get the contract for the revival of the steel entity in Pakistan, but all the Chinese companies were shortlisted.
Pakistan is seriously concerned about the Chinese slowing down the investment and effort in the CPEC projects that have emerged as the principal plank for development, the report said citing analysts.
In the past seven years, Pakistan has only been able to complete three China-Pakistan Economic Corridor (CPEC) projects in Gwadar while one-dozen schemes costing nearly USD 2 billion remain unfinished including those of water supply and electricity.
Of 12 China-Pakistan Economic Corridor schemes, including water supply and electricity provision, with USD 2 billion projects underway in Gwadar, only three projects having a value of over USD 300 million have been completed.
The new government has scrambled to assuage Chinese concerns in the wake of the Karachi University campus attack amidst reports on the social media that unnerved by security threats, a large number of Chinese have left Pakistan.
The Chinese are equally concerned. While the Pakistan side has called reports on social media "rumours", the Chinese Embassy in Islamabad has played it down as a 'routine' transfer of Chinese personnel, the report said.
Notably, Pakistan Foreign Minister Bilawal Bhutto Zardari is scheduled to embark on his maiden two-day visit to China on Saturday at the invitation of the Chinese State Councilor and Foreign Minister Wang Yi.
