Summary The recent packages granted by the government were worth Rs 41 billion
KARACHI (Dunya News) – Production in Pakistan Steel Mills (PSM) has hit an almost halt despite bailout packages by the government in the past years of crisis, Dunya news reported on Wednesday.
It has been reported that the organisation’s losses have widened to at least Rs 153 billion in the past seven years. PSM’s financial losses have increased invariably during 2007 to 2015.
The company was given bailout packages several times in the past however, the funds could not help better the production or lessen the losses. It would not contrast with the truth if the PSM is called a destroyed company at this point.
The recent packages granted by the government were worth Rs 41 billion.
The steel mill was under Rs 17 billion debt in 2008 however, the amount has crossed Rs 35 billion in 2015. The PSM is unable to pay salaries to employees and the government took care of the issue in the past.
The ruling party has decided to privatize the severe crisis-hit company following the International Monetary Fund’s (IMF) reforms package.
A Chinese company has shown interest in taking the wheel at the PSM. A delegation of China’s Metallurgical Group had visited the PSM site in the matter. The members of foreign delegation also held a meeting with Minister for Industries and Production, Ghulam Murtaza Khan.
The group seemed determined to increase its production at least to five million tons.
The incumbent government had transferred at least Rs 18.5 billion in April 2014. The amount does not include the funds which were moved to pay off employees.
It should also be mentioned here that after the 18th Amendment, the federal government needs to take into account Sindh government and Council of Common Interest’s (CCI) stance. The government has made a formal offer to the provincial government for takeover. The progress had come in after the provincial government showed interest.
Minister for Privatization, Muhammad Zubair earlier had stated that the process will be made completely transparent and fair. On October 14, the minister held press conference in the federal capital. He criticised few segments for resorting to delivering rhetorics only. He urged the criticizing elements to come up with workable proposals.
Zubair further had said that the process would take at least three to four years as the matters engages several departments to settle legal and financial issues.
However, Pakistan People’s Party (PPP) has always been against privatization of national assets including Pakistan International Airlines (PIA).
