Despite the failure to find a buyer for Pakistan Steel Mills (PSM), the government has decided to restore the country’s largest steel-producing plant through the Ministry of Industries and Production.
On Thursday, the Senate Standing Committee on Industries and Production was informed that three of the four Chinese businesses seeking for PSM had withdrawn their interest.
The committee’s head, MQM’s Khalida Ateeb, asked about the future of the PSM after it was removed from the privatisation list.
Jawad Paul, Secretary Privatisation Division, informed the committee that the PSM was added to the privatisation list on June 17, 2019, but that the Privatisation Commission Board decided to halt the privatisation process at its meeting on October 6.
A concern was raised about a lack of transparency because there was only one bidder for a project. The Privatisation Commission Board’s decision needs approval from the federal cabinet. Then, the Ministry of Industries and Production will run the project.
The state-owned company, PSM, has been losing a lot of money every year (about Rs30 billion) and has over 3,000 employees with just three officers. The PSM had 589 staff in the security department, and they were losing Rs12.8 million each year due to theft. It was noted that the theft issue had improved, but the PSM management hadn’t taken strong action against the culprits. In the past, a person stole copper worth Rs10 billion, and instead of firing them, they were supposed to be taken to court. But this didn’t happen.
The Ministry of Industries and Production was asked to keep better records of inventory to prevent future losses. They will also start the process of hiring a CEO for the PSM and hold a board meeting to plan for its future.
They will also discuss the PSM issue at a special council meeting to figure out the cost of production and how to revive it. The committee also talked about the Sugar Advisory Board’s role and functions.
The meeting included Senator Saifullah Sarwar Khan Nyazee, Senator Fida Muhammad, and Senator Zeeshan Khanzada.
