Theft at steel mills on the rise

PSM has suffered loss of Rs18m due to stealing of machinery, assets since 2021

ISLAMABAD:

The Senate Standing Committee on Industries and Production was informed on Friday that incidents of theft were on the rise at the closed Pakistan Steel Mills (PSM) that significantly impacted the industrial giant’s operational capability and deepened its financial burden.

During discussion on the challenges being faced by the steel mills at a meeting of the Senate committee, acting PSM Chief Financial Officer Arif Shaikh acknowledged that there had been an alarming surge in the theft of goods and equipment in the mill’s premises, resulting in substantial losses to the state-owned enterprise.

design: mohsin alam

Officials informed the committee that since 2021 incidents of theft had escalated, which caused a loss of around Rs18 million. However, recoveries amounting to Rs4.9 million have been made.

Shaikh added that the theft of machinery and assets had significantly impacted the operational capability as well as financial stability of PSM.

At the same time, he said, PSM employees had been given a 25% increase in temporary relief allowance, effective from September 2023, as announced by the government for all public sector workers.

Committee Chairperson Senator Khalida Ateeb asked about the alleged link between the decrease in PSM workforce and the surge in theft cases.

Endorsing that, the acting CFO attributed the increase in stealing of PSM’s assets to the reduction in workforce. “Owing to a drastic reduction in the number of employees from over 9,000, PSM wears a deserted look, leading to an increase in security vulnerability,” he said.

Officials told the Senate committee that there were only 3,000 employees in PSM with 589 staff members in the security department, adding that the yearly loss due to theft was estimated at Rs12.8 million.

Senator Khalida Ateeb expressed dismay at the failure of the Ministry of Industries and Production to appoint the chief executive officer (CEO) of PSM for the past four months.

To take up the issue, the Senate panel decided to hold a separate meeting with the caretaker minister of industries and production and the secretary industries.

Read PSM excluded from privatisation agenda

Later, the committee chairperson adjourned PSM-related matters for two weeks because of the absence of the minister and the secretary from the huddle.

The standing committee decided that the next meeting on PSM would feature a comprehensive briefing on theft prevention strategies, the future outlook of the mill, safeguarding employee welfare, protecting assets and immediate plans for the resumption of steel production.

PSM had been shut down in 2015 under the Pakistan Muslim League-Nawaz (PML-N) led government due to the halt to gas supply amid a widening financial strain and huge outstanding dues payable to electricity suppliers.

In January 2020, the Pakistan Tehreek-e-Insaf (PTI)-led government decided to place PSM under the privatisation programme to sell it from state ownership to an interested investor. However, in October this year, the federal cabinet decided to remove the mill from the government’s privatisation list after failing to attract any buyer for the industrial behemoth.

At present, out of the 26 entities listed for privatisation, only three including Heavy Electrical Complex, Sindh Engineering Limited and Pakistan Engineering Company belong to the industrial sector.

The Senate committee also addressed the key financial matters and deliberated on the outstanding payments required to be made by National Fertiliser Marketing Limited and Utility Stores Corporation to the Trading Corporation of Pakistan.

It recommended that excess employees should be relieved of duties to ease the burden on the institution, which aligns with its operational requirements.

It was noted that proactive measures were being considered to ensure timely payments and prudent human resources management within the key institutions with particular focus on sustained growth and stability.

Senator Saifullah Sarwar Khan Nyazee, Senator Ataur Rehman, Senator Fida Muhammad and Senator Abdul Qadir were present in the meeting.

Published in The Express Tribune, December 23^rd, 2023.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.