Senate body slams govt for not coming up with revival plan for PSM, Utility Stores.

Byline: Kalbe Ali

ISLAMABAD -- The Senate Standing Committee on Industries and Production criticised the government on Monday for its failure in coming up with a revival plan for Pakistan Steel Mills (PSM) and Utility Stores Corporation (USC) after more than a year.

The committee further noted that a cabinet member was facilitating smuggling of steel scrap from Iran to local re-rolling mills.

Committee Chairman Senator Ahmed Khan said the incumbent government was discussing serious issues at every forum including the standing committees but 'there was no futuristic approach'.

It is unfortunate that the lethargic approach is not only protecting steel mafias in the country but a delay in the revival plan is also increasing the liabilities of PSM and making it less attractive for investors, Senator Khan said.

On the occasion, group of PSM stakeholders alleged that the Ministry of Industries and Production and the Federal Board of Revenue are not interested in resolving the matter.

Adviser to the PM on Industries and Production Abdur Razak Dawood and Adviser on Poverty Alleviation Dr Sania Nishtar faced a barrage of queries over ways to improve performances of respective government entities.

The committee chairman suggested that while a future policy was under consideration at the Economic Coordination Committee (ECC), radical interim arrangements can be put in place.

'We know mafia like groups are importing steel scrap through under-invoicing. One solution is to take a policy decision and allow all imports through PSM only. This will regulate import figures and even the business of re-rolling mills will become documented,' Senator Khan said.

However, there was no reply from the official side over the suggestion. The committee was informed that financial adviser for PSM will be appointed soon to suggest modes for inviting strategic investors for the steel mills.

Currently PSM stands at a deficit of Rs510 billion, of which Rs40bn was accumulated in the last 14 months.

The committee was informed that the total liabilities in terms of pension and gratuity of retired employees were around Rs15.8bn.

The committee also discussed the proposal of developing coordination between BISP interventions and USC.

Dr Nishtar briefed the committee that BISP had 5.2 million women registered in its network who are paid Rs5,000 every quarter of a year.

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