Losses, liabilities of PSM surge to Rs510b.

Byline: Imran Ali Kundi

ISLAMABAD -- Overall losses and liabilities of Pakistan Steel Mills (PSM) have surged to Rs510 billion as the government has failed to revive the country's largest industrial unit.

The Senate Standing Committee on Industries and Production was informed that losses and liabilities of PSM had increased by Rs40 billion in last 14 months, taking overall losses to Rs510 billion. The ministry of industries and production has informed the committee that government is working on revival plan for the PSM by adopting model of public-private partnership (PPP). Under the proposed PPP, the government would give some shares and management of the PSM to a private investor to revive the Mill, which is dysfunctional since July 2015.

The committee was informed that federal government is providing salaries to the workers and officials of the PSM from last few months. Special secretary ministry of finance told the meeting that ministry keeps giving funds to PSM in heads of salaries and other expenditures. The ministry of finance would help PSM in getting approval of the proposal to liquidating funds and diverting them for payment to retired employees. He said that it will also provide gradual support with supplementary grants over a period of 3-4 years. The members of the Committee, however, called for a rigorous solution to the problem with early payments.

Senate Standing Committee on Industries and Production was further told that the total liabilities in terms of pension and gratuity of retired employees amount to Rs15.8 billion. However, around Rs238 million has been received recently from the National Industrial Park. Meanwhile, there is a proposal to sale some steel slabs of worth around Rs5 billion is under consideration.

It was also told that this liquidation of asset will take around 12-18 months. The committee was of the view that the payment of Rs5 billion should be made as early as possible so that 33 percent of the total liability is paid and sufferers get some...