Federal Production Minister Anwar Ali Cheema has proposed to the government to privatise Pakistan Steel Mills (PSM), describing it as a sick unit whose losses are getting out of control.
“As the government is unable to operate the steel mill due to unbearable financial burden, it is better to privatise it,” he said while speaking at a press conference here on Tuesday.
He said the steel mill had sought a Rs10 billion bailout package but the production ministry recommended only Rs2 billion to ease the industrial giant’s financial woes. “The mill has 21,000 employees, of which 50 per cent are a burden on the government,” he said, adding the ministry had asked the government to cut half of the workforce.
The mill has been working without a chief executive officer (CEO) for months, though the board of directors has sent three names to the government for appointment to the slot. “We did not agree with those names but a summary has been sent to the prime minister for consideration.” However, he did not disclose the names. “We have recommended to the government that the mill’s board of directors should also be reconstituted and a professional be brought from the market as CEO,” Cheema said.
He said auditors had unearthed embezzlement of Rs530 million in two subordinate departments of the Ministry of Production. One of them was Gujranwala Tools, Dies and Moulds Centre (GTDMC).
“Powerful mafia including CEOs of different companies is behind the mega scam and cases have been referred to the Federal Investigation Agency (FIA) for investigation,” he said and called for strict action against the officials involved in corruption.
At present, the government is conducting audit of six subordinate departments of the Ministry of Production.
Discussing the performance of Pakistan Industrial Development Corporation (PIDC), he said the organisation earned Rs430 million in financial year 2010-11 and added, “I use only one vehicle as chairman of PIDC.”
Published in The Express Tribune, November 2nd, 2011.
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May Allah Pak do better. Its for the sake of PSM's 21000 employees. Pray for PSM please
The govt. has no job running trains, planes and steel mills it should regulate the industries but not run companies in them!
They should all be sold off and the money should be invested in health and education sectors.
Totally false data is being brought up on the media. What was the fundamental purpose to built up the Pakistan Steel? Was an idea that Pakistan Steel will earn profit like private companies? purpose were to industrialize the country, get iron and steel locally self reliance, develop skillful main power for other industries and save exchange money. Did Pakistan Steel not achieve all its goals.it was possible to brought it up profitable industry if down stream industries were not dropped in Gen. Zia regime. It is also possible today that Pakistan Steel become a profitable industry if duties and taxation system will reset in the interest of domestic industry. It is conspiracy, big rooted conspiracy, a big portion of media, steel importers, foreign interests are also involved. Minister of production who belong to that party who tried to privatize the Pakistan Steel in 2006, and there under the table deals were involved.