LAHORE:
The Pakistan Steel Re-Rolling Mills Association (PSRMA) has shown concern over suspension of power to the industry and feared massive layoffs and unrest if it is not restored immediately.
In a statement issued on Monday, PSRMA Chairman Asmat Pervaiz and Patron Chairman Hafiz Muhammad Akbar said that the Steel Re-Rolling industry in Punjab is passing through a crisis-like situation due to the unavailability of electricity and gas, which is a prime raw material.
They said that because of heavy taxation in the 2014-15 budget, the steel industry is already struggling for survival.
“The government will have to announce a special package to save the dying steel sector besides ensuring provision of regular supply of electricity,” said PSRMA.
“It is unfortunate that the steel industry in Punjab has no electricity and gas is being provided for one day a week, while situation in other parts of the country is quite different.”
The PSRMA pointed out that discrimination in electricity and gas supply to Punjab must be stopped and distribution must be in accordance with the size of industry and not according to the province.
“When the industry in Punjab is paying a considerable amount of revenue to the exchequer, its protection is also the responsibility of the Federal government.”
It is submitted that closure of power supply to the around 500 steel units in Punjab has also resulted in total closure of 28 dependent industries of the steel sector, to whom raw material is being provided by the Re-Rolling industry. These industries include agricultural implements, sewing machines, surgical instruments, tractor spares, power looms, electric fans and appliances, light engineering, housing and construction etc.
They added that closure of the industry due to suspension of electricity would deprive millions of workers of their jobs, creating unrest in the country. “It is very surprising that at one side the government is trying to create opportunities of employment and on the other hand adopting the policies which render unemployment for those who are on job,” they said. “This is treated as an anti-industry policy and is not in favour of the government itself.”
Published in The Express Tribune, July 15th, 2014.
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Move industries to Bangladesh or import from India. At least Pakistan will have less pollution.
Please refer to query to Ittefaq Group of Industries as they are the only rightful producer of steel in Pakistan. As there is no conflict of interest law in our parliament, the PM can choose to suffocate and debilitate the country's Steel Mills so that his own foundries can prosper, as they have with every Metro Bus project.