ISLAMABAD: The cabinet’s Economic Coordination Committee (ECC) approved a bailout package worth around Rs8 billion for Pakistan Steel Mills, Express News reported on Tuesday.
A profitable entity until 2011, the accumulative losses of the state-run steel mills have crossed Rs50 billion during the last four years. The unit is causing a loss of Rs550 million per month to the national exchequer.
In a meeting chaired by Finance Minister Abdul Hafeez Shaikh, the committee discussed the funding of Water and Power Development Authority (Wapda) developmental projects.
The ECC also approved allocation of newly found gas reserves by the Oil and Gas Development Company (OGDC) to various gas companies.
During the meeting, the committee reviewed the gas supply from Makori gas field to the Southern Gas Company (SSGC).
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Shameful, disgraceful, despicable !!!!
Who will manage the Unemployment after Steel mill has been privatized? In this recession. Atleast people have a source of income, even though the govt sector is in deep abyss.
Hand over Microsoft or IBM or Apple to Pakistan & in the very first quarter it will start incurring heavy losses! Within one year, it will be declared sick because equal number of incompetent political appointees will be hired in these organizations.
What happened to the Steel Mill Corruption cases Recover the looted money first before throwing more money down the drain Stop useless recruitment and regularizing of excess labour on political grounds
Energy intense industry in a country which is short on energy -- compound that problem by having a corrupt/inept govt run it -- no wonder it doesn't turn a profit. It might be difficult to privatize this industry without a govt guarantee of energy supply and it's unlikely that many foreign investors would place much reliance on Pakistan govt guarantee. I wonder whether it would be less expensive to import your steel from India or China?
Steel industry is supposed to be a very profitable industry.
I dont understand why Pakistan cant manage to get a decent revenue?
Why waste good money? PIA, Pakistan Steel & Pakistan Railways cannot be turned into profitable ventures so long as these are in public sector. Pakistan Steel needs to be privatized if any one wants to make it profitable.
Sell it, as soon as possible, get what you can out of it, government can not run steel mill, don't believe, check any governament in the world running it. No see just sell it to ny Pak businessman. Love you all.
@GangaRam: It was being privatized during Sir Musharraf's govt. One can find the facts and figures that in his govt. it became profitable.. but the PCO CJ didn't like the move and interfered in it.. and the result today is in front of us. HUH.
Fully agree with Parvez! Why waste good money? PIA, Pakistan Steel & Pakistan Railways cannot be turned into profitable ventures even if you get 100 Bill Gates.
Throwing good money after bad, we never learn.
should be privatized.