Govt urged to urgently decide PSM's fate
Members of a Senate panel have urged the government to expedite its decision on the future of the Pakistan Steel Mills (PSM), which has been non-functional for years.
The Senate Standing Committee on Industries and Production visited the PSM on Saturday under the chairmanship of Senator Aon Abbas Buppi.
The committee toured various plants within the PSM and reviewed the organization's current debt challenges, payment delays and expenditures, and listened to the concerns of employee unions.
They held discussions with PSM Chairman Asad Islam Mahni and other officials on major issues facing the PSM. During a briefing, Mahni informed the committee that by 2024, the mill had accumulated a total loss of Rs600 billion and was paying Rs20 billion annually in interest on current loans.
He said the mills owes Rs89 billion to the National Bank of Pakistan (NBP) as most of the loans from the NBP have been used to cover expenses, including salaries for 934 current employees.
The officials told the committee that the government is simultaneously considering two projects:
One involves the revival of the mill using Russian firm Industrial Engineering LLC, which would utilize arc and blast furnaces for restoration.
The other project considers winding down the mill after appointing a review firm to evaluate its viability.
The committee also met with representatives of the workers' union, who apprised them of the hardships faced by both current and laid-off employees. To address their concerns, the committee formed a subcommittee tasked with holding talks with management over workers' complaints.
The Senate committee appreciated the current management's efforts to reduce PSM's expenditures.
However, it expressed anger over the continued incidents of theft within the organization and instructed authorities to assess the losses incurred from such activities. It also recommended accelerating the disposal of non-functional or expired assets that are no longer operational.
The committee was briefed on the arbitrary allotment of PSM land by the Sindh government a few years ago. It expressed concern over the allotment of 1,370 acres and 400 acres of undisputed land to local villages, stating that such allotment cases should be referred to the Council of Common Interests (CCI).
The committee toured various plants within Pakistan Steel Mills and recommended that the government expedite its decision on the future of the institution.
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