BoD opposes decision to close PSM

Says such a move will be counterproductive, create unrest and despondency

KARACHI:

The board of directors (BoD) of the Pakistan Steel Mills (PSM) has taken exception to the federal cabinet’s decision to close down the country’s biggest industrial unit, stating that such a move will be counterproductive and will create unrest and despondency among people.

In a letter sent to key government figures, BoD Chairman Aamir Mumtaz expressed alarm over the news of the closure, noting that the cabinet made the decision without consulting the board, stakeholders, industrial representatives, or economic experts.

He said closing the mills will have severe economic and social consequences. The decision, he said, lacks public support as the people of Pakistan, stakeholders, and the industry want the PSM to be revived.

The letter said the board’s recommendations for the mill’s revival were ignored and that the board was not consulted. No valuation of the land was conducted, and that the closure would lead to this land’s misuse.

It said the government should resolve the outstanding liabilities of the PSM and focus on its revival, maintaining large-scale manufacturing capacity in the national interest.

Closing the steel mill will lead to further disappointment and increased unemployment. The decision should be reversed, and a positive plan should be formulated, it said.

According to the BoD, the government’s allies, industry experts, and employees have expressed concerns over the lack of transparency and consultation in the decision-making process.

The chairman clarified that closing the mill would not eliminate or reduce annual expenses since 90% of the losses are due to interest charges on financial liabilities, which need to be settled.

Pakistan, he said, has lagged in large-scale manufacturing, and the government cannot justify shutting down a major national manufacturing facility.