Pakistan’s government on 8 April decided to recover a foreign funding loan from a local cement plant that has been under construction for a long time in Balochistan province.
According to a government statement, Adviser to the Prime Minister on Finance and Revenue, Dr Abdul Hafeez Shaikh, on the summary moved by the Economic Affairs Division (EAD) for the recovery of foreign currency loans from the private sector borrowers, ie Galadari Cement Ltd (GCL), has decided that the EAD should re-submit the proposal after consultation with the State Bank of Pakistan with all details.
No further details about origin or value of funding were disclosed by the government nor was commitment of the company received.
GCL was incorporated in 1980 with an acquisition of land at district Hub, in Balochistan, while formal construction of the plant begun after 19 years. The company procured equipment from European manufacturers. However, the plant had witnessed multiple closures due to legal and inheritance issues.
Pioneer Cement Co Ltd, which had signed an agreement to acquire 100 per cent stakes of Galadari Cement a few years ago, has not issued any statement on this new development nor updated whether its programme to acquire the company is intact or not