The federal government has spent about Rs 50 billion on Pakistan Steel Mills (PSM) since it shut down its operations in mid of 2015 on salaries, supply of gas and other heads without any output, well-informed sources told Business Recorder.
The public authority is expanding Rs 3.5 billion for each annum to PSM, of which pay bill is around 400 million every month since Plants’ conclusion which has now declined to Rs 110-120 million for every annum after conservation of representatives. Also, Rs 70-80 million every month is being spent to supply of gas.
The sources said, PSM the board is being compressed to restore those workers who were taken out after fair treatment pointed toward setting it up for restoration/privatization based on suggestions of Representative Mandokhel’s Panel. Nonetheless, the public authority is attempting to get a stay request against the Board of trustees’ proposals.
As per media reports, PSM posted Rs 7.45 billion benefit after charge in 2021-22 despite the fact that Plants’ complete misfortunes arrived at Rs 206 billion – far past its ongoing resources worth Rs 195.5 billion.
In any case, Mumrez Khan, Convener PSM Partners Gathering, who has offered his administrations to resuscitate the plants from their own assets, contended that absolute worth of PSM’s resources is Rs 830 billion, and asserted that worth of resources has been represented appropriately.
PSM presently owes the GoP Rs.102 billion in head and Rs.48 billion in interest. Public Bank of Pakistan is owed Rs.38 billion in head and Rs.38 billion in revenue while SSGCL is owed Rs.23 billion head, and a contested measure of LPS on this sum.
The PSM was beneficial up to 2007-08, yet starting around 2008-09, its defeat started. At last, it totally shut down on June 10, 2015, and from that point forward its misfortunes are expanding step by step.
In spite of the PSM being shut beginning around 2015, the enterprise has been paying compensations to the labor force by getting cash from the public authority of Pakistan, which conveys a critical loan cost. Thus, Administration of Pakistan is compelled to acquire cash to support these credits to the PSM.
In consistence with bearings of High Court of Pakistan, Legislature of Pakistan had endorsed and delivered about Rs.13 billion for conservation of the PSM workers. Appropriately, 5,300 representatives were saved during 2020 and 2021, which incorporates 49.9% of the factory’s work force and PSM documented the case in Labor Court for conservation of the leftover 51.1%.
The sources said from late occasions at PSM, apparently political powers are once again working and pushing for unjustifiable and ridiculous evacuation of the executives staff, impeding President determination by the Board, teaching The executives to hold mandate for Association restoration, deterring Pakistan Steel’s conservation request in Sindh Work court to out and out advising the executives to reestablish individuals who were ended following fair treatment and in accordance with association’s necessities and current monetary circumstance. This is occurring when endeavors were being made to lessen misfortunes and restore the factories.
The Privatization Commission which has been doled out liability to finish privatization process is likewise going delayed as it is going by a PPP serve, a party went against to the plants privatization.
