Tag: Pakistan steel mills

  • 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. 

  • PIA to be privatised: assets, debt and staff to be transferred

    PIA to be privatised: assets, debt and staff to be transferred

    Pakistan International Airlines (PIA), which has been running at a loss, has unveiled its privatisation plan. Sources indicate that this plan encompasses not only the privatisation of PIA but also the power distribution companies and the revival of Pakistan Steel Mills.

    Furthermore, it has been reported that the process of appointing a financial advisor for PIA’s privatisation is underway. While PIA’s affiliated institution will remain unaffected by privatisation, plans have been solidified to address issues related to PIA’s debt and government guarantees.

    According to ARY News, the Privatisation Commission sources have disclosed that, under the current circumstances, Pakistan Steel Mills cannot be privatised. However, efforts will be made to enhance the mill’s production and capabilities to attract potential investors.

    It’s worth noting that the restructuring plan for the privatisation of Pakistan International Airlines (PIA) is progressing rapidly. The PIA administration has invited applications from legal and corporate firms for assistance in this restructuring plan. The Department of Contract Management has been instructed to forward these applications by October 6.

    The assets of PIA, including properties, debts, aircraft, and employees, will be transferred to the new company, presenting PIA as a debt-free organisation to potential investors.

  • ‘Asad Umar will always stand with you’: Old video comes back to bite as PTI fires 9,350 Pakistan Steel Mills employees

    ‘Asad Umar will always stand with you’: Old video comes back to bite as PTI fires 9,350 Pakistan Steel Mills employees

    With the government approving retrenchment of all 9,350 remaining employees of the Pakistan Steel Mills (PSM) with a one-time severance cost of about Rs20 billion, an old video of now Federal Minister for Planning, Development, Reforms and Special Initiatives Asad Umar has come back to haunt the Pakistan Tehreek-e-Insaf (PTI) government.

    The Economic Coordination Committee (ECC) on Wednesday approved firing all employees of the PSM, reasoning that the mills haven’t been functioning for years and the employees haven’t been doing anything.

    There are 9,150 employees who will be fired within a month and another 250 will be let go within three months. The ECC meeting, chaired by Prime Minister’s (PM) Adviser of Finance and Revenue Abdul Hafeez Shaikh, also approved a Rs20 billion package for the employees, which amounts to Rs2.3 million per person.

    As the decision made headlines, mixed reactions were drawn. While some lauded the government’s ‘full and final’ human resource rationalisation plan for the PSM employees in accordance with the judgments and observations of the Supreme Court (SC), others criticised the same for leaving thousands unemployed.

    Amid war of words on social and mainstream media, an old video of then opposition member Asad Umar resurfaced, wherein he was seen garnering the support of PSM employees by vowing to stand by them if the PTI is elected to power. The undated video is said to be from the tenure of former ruling Pakistan Muslim League-Nawaz (PML-N), during which PSM was shut down after becoming a burden on the national exchequer under the Pakistan People’s Party (PPP).

    WATCH VIDEO:

    https://www.youtube.com/watch?v=1tZf62l5Vms

    “Record this so that you can embarrass me by showing me this video if I backtrack on my promise. If PTI comes to power and PSM employees are deprived of their rights, I won’t be standing with the PTI government, but will be supporting PSM employees instead,” Asad can be heard as saying in the video that is doing rounds over the internet as netizens troll him for “taking a U-turn”.

    Meanwhile, opposition parties are also criticising the government for its decision.

    Though the mills have been closed for years, they are running a Rs550 billion deficit and billions are being spent on debt servicing. However, the move will not be finalised until it is approved by the federal cabinet.

    Reports said that PSM stopped its commercial operations in June 2015 without formulating any human resource plan for its 14,753 employees, now reduced to 9,350. Presently, the per month net salary bill of PSM employees is approximately Rs350 million, adjusted as a loan in the financial accounts of PSM. Since 2013, an aggregate loan of Rs34 billion has been extended to PSM by the government on account of net salary payment.

  • PM Imran plans to hand over Pakistan Steel Mills to China

    Prime Minister (PM) Imran Khan has decided to hand over Pakistan Steel Mills (PSM) to China for its revival through government to government deal, Geo News has reported.

    According to the details, PM is also exploring options to finance multi-billion-dollar railways Mainline (ML-1) during his upcoming visit to Beijing.

    PM will take up five issues during his visit, he will offer China to get Pakistan Steel Mills, finalise deal on modernisation of ML-1, financing of Bunji hydropower project, agriculture and social sectors-related projects in and outside the ambit of CPEC.

    Pakistan’s top leadership will give assurances to the Chinese side that China Pakistan Economic Corridor (CPEC) would not slow down, but its next phase would be pursued with zeal and vigour despite passing through under the IMF [International Monetary Fund] programme.

    PM Imran will leave for a three-day visit to China on Monday, where he would also discuss Kashmir dispute.

  • Govt begins revival of Pakistan Steel Mills, aims to boost production to 3 million tonnes

    Govt begins revival of Pakistan Steel Mills, aims to boost production to 3 million tonnes

    The government has initiated the revival process of Pakistan Steel Mills (PSM) and is aiming to enhance its production capacity from 1.1 million to 3 million tonnes a year, Associated Press of Pakistan (APP) reported.

    According to the details, the government, under the new revival plan, wants to make PSM a profitable organisation through public-private partnership.

    For the purpose, the government is inviting applications for PSM’s new chief executive officer (CEO) and is looking for a dynamic, results-oriented leader with immaculate credentials and experience.

    Currently, PSM is the largest industrial mega-corporation. The Economic Coordination Committee (ECC) had put PSM on the privatisation list, but the government had later decided against it and initiated the process of reviving the steel mills through a public-private partnership.