Pakistan Steel Mills: PM rejects Rs11 billion equity investment in company
Forms committee to come up with proposals to revive the mill.
The prime minister was told that the main cause of losses suffered by the mill was its inability to utilise capacity and that the mill would break even if its production reached 75% of capacity. ILLUSTRATION: JAMAL KHURSHID
ISLAMABAD:
Expressing concern over poor performance, Caretaker Prime Minister Mir Hazar Khan Khoso has ordered a probe into the affairs of sinking Pakistan Steel Mills and sent a request for injecting equity of Rs11.5 billion to a high-level committee for discussion.
According to sources, the Ministry of Production had sought the equity injection to revive the steel mill, but the prime minister did not approve it, instead he constituted a three-member committee comprising secretaries of the ministries of finance and production and chief executive officer of the steel mill.
They will deliberate and come up with concrete and practical recommendations to overcome “within a day” the financial woes faced by the mill.
The premier recalled that Pakistan Steel Mills was once a profitable unit, but poor performance of the top management pushed it towards financial collapse. “The committee will find a solution to improve the financial health of the mill,” he said.
According to a statement, the prime minister was presiding over a high-level meeting to review overall performance of the steel mill, issues and challenges at the PM House on Friday.
Federal Production Minister Shahzada Ahsan Ashraf Sheikh, representatives of the ministries of finance, planning and production and management of the mill were present in the meeting.
In his briefing, Ministry of Production Secretary Shahidullah Baig apprised the prime minister of the history, issues and performance of the steel mill.
The prime minister was told that the main cause of losses suffered by the mill was its inability to utilise capacity and that the mill would break even if its production reached 75% of capacity.
So far, four bailout packages have been given, but they could not revive the mill as the money was released piecemeal.
“The steel mill is a strategic asset and it should be managed in a manner that could reduce losses,” Khoso said.
Published in The Express Tribune, April 13th, 2013.
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Expressing concern over poor performance, Caretaker Prime Minister Mir Hazar Khan Khoso has ordered a probe into the affairs of sinking Pakistan Steel Mills and sent a request for injecting equity of Rs11.5 billion to a high-level committee for discussion.
According to sources, the Ministry of Production had sought the equity injection to revive the steel mill, but the prime minister did not approve it, instead he constituted a three-member committee comprising secretaries of the ministries of finance and production and chief executive officer of the steel mill.
They will deliberate and come up with concrete and practical recommendations to overcome “within a day” the financial woes faced by the mill.
The premier recalled that Pakistan Steel Mills was once a profitable unit, but poor performance of the top management pushed it towards financial collapse. “The committee will find a solution to improve the financial health of the mill,” he said.
According to a statement, the prime minister was presiding over a high-level meeting to review overall performance of the steel mill, issues and challenges at the PM House on Friday.
Federal Production Minister Shahzada Ahsan Ashraf Sheikh, representatives of the ministries of finance, planning and production and management of the mill were present in the meeting.
In his briefing, Ministry of Production Secretary Shahidullah Baig apprised the prime minister of the history, issues and performance of the steel mill.
The prime minister was told that the main cause of losses suffered by the mill was its inability to utilise capacity and that the mill would break even if its production reached 75% of capacity.
So far, four bailout packages have been given, but they could not revive the mill as the money was released piecemeal.
“The steel mill is a strategic asset and it should be managed in a manner that could reduce losses,” Khoso said.
Published in The Express Tribune, April 13th, 2013.
Like Business on Facebook to stay informed and join in the conversation.