KARACHI:
The Russian firm that constructed Pakistan Steel Mills (PSM) has shown its interest to provide the latest technology in order to make it profitable.
According to a press statement on Saturday received from Moscow, Tiag Proom export company Director M Rizichenko, while talking to a delegation of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Pak-Russia Business Council (PRBC), expressed his interest to make PSM financially profitable.
He further stated that with new machinery and modern technology, the production of PSM can be increased to 0.4 million tons annually, which will help in saving workers from getting unemployed.
“Pakistan Steel Mills would be profitable only in the private sector,” Rizichenko said, adding that it is necessary for the progress of the Mill that an audit is conducted and a comprehensive report, which includes the efficiencies and difficulties of the mill and information regarding technology, is prepared. He said that for this he has also talked to the government about the audit and report of mills.
Leader of the delegation, FPCCI President Senator Haji Ghulam Ali informed Rizichenko that the Pakistani business community had offered the Prime Minister of Pakistan to run the PSM under the private sector, which the PM had wholeheartedly accepted.
Furthermore, he agreed to talk to the PM for audit and the preparation of comprehensive reports, so that this project may be profitable and save the Mills from the loss of Rs100 billion.
Published in The Express Tribune, November 6th, 2011.
COMMENTS (3)
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The problem with Pakistan Steel at present is of non-availability (or shortage) of raw material rather than of the need for new technology and/or machinery. New machinery can be brought here in second phase. So that any of of the sympathized business groups, including from Russia, should help Pakistan Steel in having raw material for the consistent cycle of 90-days.
@ Babar Ali: I agree that there is a rampant corruption in the Mills. But the Mills is not overstaffed. The annual need of steel in Pakistan is of about seven million tons. Pakistan Steel is utilizing only 15 percent of its installed capacity of 1.1 million ton per year. And total production of steel in the county is not over one million tons at present (I guess). So Pakistan is a steel deficit producing country.
If Pakistan Steel is run on its full capacity and expend its production as per Russian plan. Pakistan Steel would be needed more employees in that case.
Privatization of Pakistan Steel is not the right solution of the problem in my opinion. And to make the Mills free of corruption, one has to make it free from political influence that the management from private sector would do - if it acquires the Mills.
Pakistani Banks or Pakistan Steel like Pak Railways or PIA for that matter can not be a profitable business and a voter/party job-reward program at the same time. Over employment & under qualified staff results only in corruption, scams, theft, negligence, depletion of resources & poor investment planning. Privatization is the only solution when corruption is rampant. We can't afford to keep pouring irreplaceable national wealth down the drain.
If there is a solution and a good offer then why you are trying to convince to be privatize Pakistan Steel? that is the reason that we, the employee of Pakistan Steel think that there are conspiracies of steel importers and foreign interest behind the present situation.