SHAFAQNA PAKISTAN (Shia News Agency)
Pakistan steel mill has become a constant loss entity. Few months ago government added Rs53 billion losses to its stock of Rs258bn debt and liabilities in 16 months.
In October 2014, the plant could produce only 1870 tons of iron and steel against its daily capacity of 91,667 tons. This comes at a time when the government has sought applications for appointment of financial advisers for PSM’s privatisation. Pakistan Steel Mills (PSM) was suffering a loss of Rs120 billion for the last six years and on yearly basis it was suffering a loss of Rs20 billion to Rs22 billion. However with a bailout package Pakistan Steel Mills have managed to increase production to 60 percent . After spending more than 500 million annually since 2008, PSM is now saying that they need more money for maintenance of machinery and they also claim that due to old machinery they will not be able to maintain this high production at 60 per cent. They have utilised the current grant from the government in paying back dated salaries to its entire staff.
Shockingly, Finance Minister Ishaq Dar has forwarded this request to the ECC. If Mr Ishaq Dar truly wanted to benefit Pakistan then he should have instead requested NAB to start criminal proceedings against the PSM and all its managers. Because the PSM has been paid 500 million rupees annually since 2008 and with this statement they admit that they have not spent any amount on maintenance and instead have utilised all this payment, around 3.5 billion rupees, on salaries alone. The PSM has a staff of 1,600 while they require only 900 staff for100 per cent production. The employs of Pakistan steel mill enjoy all the perks and privileges with handsome salaries but still is constantly giving huge loss to public exchequers. There should be rapid check on the employs. It is duty of the government to keep an eye on the lazy and sluggish employs who are just extracting handsome salaries while doing nothing.
pakistan.shafaqna.com
