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PSM’s losses and liabilities surge to PKR 480 billion

Steel News - Published on Tue, 12 Feb 2019

Image Source: Dawn
Nation com reported that as the government has yet to come with a plan to revive Pakistan Steel Mills, the overall losses and liabilities of the country’s largest industrial unit surged to PKR 480 billion by the end of January 2019. The PSM is dysfunctional since June 2015 due to many reasons. The total losses and liabilities of the PSM have gone beyond PKR 480 billion by January 2019. Meanwhile, the Mill may remain closed for another two months, as the government is working on a plan to revive it. “The experts group constituted by the ministry of industries and production last month had sought additional three months to prepare a plan for revival of Pakistan Steel Mills,” said an official. He further said that plan of revival of PSM may come in April this year.

Earlier, the ECC on November 7, 2018 had directed the Ministry of Industries and Production to put up a plan for operationalisation of PSM within 60 days, which prompted the Advisor to the Prime Minister on Commerce, Industries & Production, Textile and Investment to constitute Expert Group to propose various options for revival of the PSM. However, the Expert group had failed in bringing a plan in two months. The Expert Group last month had informed the ECC that it was working on formulating various options and in view of the enormity of task and other commitments it could not complete the task within two months period. The ECC decided to give further three months for presenting the revival plan for the PSM.

The previous Pakistan Muslim League-Nawaz government had failed to revive the PSM despite injection billions of rupees under bailout package. However, the Mill was closed down in July 2015. The incumbent government had recently decided to delist the PSM from the privatisation list along with Pakistan International Airlines and other public sector entities.

The PTI government had also decided to set up Sarmaya-e-Pakistan company for the management of state-owned enterprises. The government had decided to transfer the management control of public sector entities to newly incorporated holding company to be named “Sarmaya-e-Pakistan Holding Limited (SPHL)”. As such the existing PSEs shall become subsidiaries of SPHL. The SPHL shall be incorporated as a company by Finance Division with 100% shareholding with the government of Pakistan. The shares of the federal government in the existing PSEs shall be transferred to SPHL and appropriate changes in their respective Articles/Memorandum of Association shall be made. Suitable legislative measures shall be taken to enable the federal government to appoint the board of directors of the PSEs on the recommendations of SPHL.

The ministry of finance stated in Fiscal Policy Statement 2018-19, which has been submitted in National Assembly that “During current year 2018-19, Pakistan Steel Mill has been delisted from privatization. After approval from cabinet, a business revival plan is being prepared at the Ministry of Industries Production. Salary and wages for PSM’s employees have also been revived during 2018-19.”

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Posted By : Rabi Wangkhem on Tue, 12 Feb 2019
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