Political cronies destroyed the Mill by indulging in massive corruption that ran into billions
KARACHI: This refers to your editorial, “The dilemma that is the Steel Mills” (February 21). It is true that the Pakistan Steel Mills (PSM) has taken the same path as that of Pakistan International Airlines. Some 40 other state-owned enterprises are also in the pipeline for disposal. However, it is not as simple as sitting in cosy offices in Islamabad and laying off employees who have nothing to do with the downfall of the PSM.
The responsibility lies with successive governments who converted the PSM into an employment exchange. Political cronies destroyed the Mill by indulging in massive corruption that ran into billions. Since June 2015, the Mill has been closed. There is no willing buyer and time is running short to meet the conditions of the $6.6 billion loan package received from the IMF. The Mill came to a standstill when the SSGC stopped the supply of gas due to pending bills of over Rs37 billion.
The PSM is the only integrated plant in the country that can take care of our steel requirements and has strategic importance in Pakistan’s economy and national defence.
It is surprising to note that its privatisation is being undertaken at a time when the government is planning a large number of projects that require huge quantities of steel.
The best course of action is to invite the Russians to repair the plant and recall old Russian-trained engineers. The Mill can be made operational within three months, for production to sustain the existing manpower. The problem with the Privatisation Commission is that it has no vision and no plan except to select the easy path to dispose of costly assets at throwaway prices.
Laying off employees is not simple, but will have to be gradual and with golden handshakes. Its sale or privatisation is not in the national interest; the Mill must be revived at all costs as it has the potential to be profitable with the passage of time.
Mukhtar Ahmed
Published in The Express Tribune, February 24th, 2016.
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