State-owned entities: PIA and PSM receiving Rs6b per month

The net equity of PSM is negative and it is not in a position to be privatised, said Secretary Privatisation Division.

APP December 02, 2013

ISLAMABAD: The government is currently injecting more than Rs6 billion per month as a subsidy to the Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) to keep them afloat. This was noted during a briefing to the Senate Standing Committee on Finance and Privatisation by the privatisation division on Monday. Secretary Privatisation Division Amjad Ali Khan said that these two big entities are incurring losses due to mismanagement and over-staffing. “The PSM is currently overstaffed with a 550 labour force and 1,400 officers which is only increasing its costs,” said Khan. He stated that the net equity of the PSM is negative and it is not in a position to be privatised, unless the government restructures it and then initiates the privatization process. Senator Fateh Muhammad Muhammad Hasani said that instead of selling state-owned entities, the government should improve the management.

Published in The Express Tribune, December 3rd, 2013.

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