Tag: Financial Losses

  • PM Shehbaz plans shutdown of loss-making govt institutions

    PM Shehbaz plans shutdown of loss-making govt institutions

    Prime Minister (PM) Shehbaz Sharif announced on Saturday that government institutions causing substantial financial losses will face closure in the coming months.

    Addressing the nation, the Prime Minister cited the Pakistan Public Works Department as an example, labeling it a financial burden on the nation. “I have made the decision to shut down institutions that drain resources instead of contributing to our progress,” he stated, revealing the formation of a ministerial committee to oversee this process.

    “I will return to you with further updates in the coming months,” PM Shehbaz affirmed, emphasizing the significance of these measures in reducing expenditure and conserving funds.

    Highlighting recent diplomatic achievements, the Prime Minister referenced successful investment commitments secured during his visits to China and the Middle East. He began his address by addressing the situation in Palestine and the issue of Indian illegally occupied Jammu and Kashmir (IIOJK).

    Reflecting on the political landscape, PM Shehbaz discussed the performance of the Pakistan Democratic Movement (PDM) post the removal of former Prime Minister Imran Khan through a vote of no-confidence in 2022.

    Celebrating his government’s completion of 100 days in office, the Prime Minister underscored recent reductions in petrol and diesel prices announced on Friday. “We must foster an environment conducive to investment, business, and education for our talented youth,” he asserted.

    PM Shehbaz stressed the importance of cultivating domestic investment before seeking foreign investments, envisioning Pakistan’s self-reliance and advancement ahead of its neighbors.

    Regarding economic achievements, he pointed to the Pakistan Stock Exchange’s rise to 77,000 points as a testament to the positive reception of the government’s recently unveiled federal budget.

  • Administrative oversights, thefts lead to millions in losses for Pakistan Steel Mills

    Administrative oversights, thefts lead to millions in losses for Pakistan Steel Mills

    In the fiscal year 2020–21, Pakistan Steel Mills (PSM), under state ownership, faced a significant financial setback, recording a staggering loss of Rs164.4 million.  

    The Auditor General of Pakistan (AGP) brought attention to the root causes behind this substantial financial downturn in its recently issued financial report for PSM. 

    Administrative negligence emerged as a primary factor contributing to the massive loss, with Rs164.4 million attributed to this oversight.  

    Furthermore, instances of theft exacerbated the financial strain, with stolen copper, brass, electric instruments, and cable resulting in a cumulative loss exceeding Rs6.49 million for the steel mills. 

    According to ARY News, the AGP’s report highlighted additional incidents of theft, including the disappearance of electricity poles, three high-tension (HT) wires of considerable value, a 132-KV transmission line, and tracks designated for freight trains.  

    The lapses in security arrangements by the PSM administration were underscored as a critical failure contributing to these losses. 

    Compounding the financial challenges, the report revealed that the PSM incurred a Rs5.62 million loss due to the unauthorised hiring of services from retired officers.  

    This improper utilisation of funds further strained the already precarious financial position of the state-owned entity. 

    Moreover, the PSM faced an additional financial setback of Rs4.33 million in terms of insurance services provided by a private company.  

    This multi-faceted financial downturn highlighted various areas where the PSM faced challenges, ranging from administrative oversights to security lapses and questionable financial decisions. 

  • PM Kakar urges rapid privatisation of PIA as flight suspensions loom

    PM Kakar urges rapid privatisation of PIA as flight suspensions loom

    Interim Prime Minister Anwaar-ul-Haq Kakar has issued a directive to accelerate the privatisation process of Pakistan International Airlines (PIA), which has been facing substantial financial losses. This move comes in response to reports suggesting that PIA’s flight operations could be halted by September 15 unless emergency funding is secured. 

    In a recent interview with Geo News, a senior PIA director revealed that the airline had reduced its operational fleet from 23 to just 16 aircraft, resulting in numerous flight cancellations. Additionally, major aircraft manufacturers, Boeing and Airbus, had suspended the supply of spare parts to PIA due to outstanding payments, causing daily losses amounting to millions of rupees.  

    The dire situation was further exacerbated when a PIA plane was detained at Dammam airport and four others were held at Dubai airport due to unpaid fuel bills. 

    The official cautioned that unless emergency funds amounting to Rs23 billion were secured, flight operations might come to a standstill by September 15. In response to these pressing concerns, Prime Minister Kakar chaired a meeting regarding PIA-related matters and assigned the caretaker Minister for Privatisation, Fawad Hasan Fawad, to oversee the privatisation process with the utmost urgency.  

    The prime minister stressed the need for a swift privatisation process to ensure reliable services for users and to bring PIA’s standards in line with global aviation standards. 

    Furthermore, the prime minister urged all relevant stakeholders to collaborate in finding immediate solutions to the challenges associated with privatization. The meeting also included a briefing on the progress of the privatisation process at PIA. 

    Read more: Islamabad Police launches campaign to catch students bunking school and college 

    According to Geo, PIA has been grappling with severe financial difficulties, including the grounding of five out of its 13 leased aircraft, with the possibility of grounding four more due to ongoing financial constraints. The airline had previously requested an emergency bailout of Rs22.9 billion, which was rejected by the Economic Coordination Committee (ECC).  

    Additionally, requests for deferring payments of Rs1.3 billion per month to the Federal Board of Revenue (FBR) and Rs0.7 billion per month to the Civil Aviation Authority (CAA) were also denied by the ECC.  

    Moreover, PIA had warned of potential disruptions in the supply of spare parts by Boeing and Airbus by mid-September. In a further blow, the FBR froze 13 of PIA’s bank accounts due to unpaid dues totaling Rs8 billion in Federal Excise Duty (FED).