A meeting of the Senate Standing Committee on Industries and Production was held today under the chairmanship of Senator Khalida Ateeb, where it was informed that an amount of Rs. 30 billion was being spent annually on the closed Pakistan Steel Mills (PSM).
During the briefing, Chief Financial Officer Arif Shaikh provided details about PSM’s’ financial situation. He said PSM had borrowed Rs. 110 billion from the government and was incurring Rs. 18 billion annually as interest charges. Additionally, PSM had annual salary charges of Rs. 2.5 billion and utility charges of Rs. 5 billion.
Meanwhile, Secretary Privatization Division Jawad Paul revealed that PSM had incurred losses of Rs. 206 billion in the previous financial year. For rehabilitation purposes, a substantial investment of $584 million would be required to start production of 1.1 million tons while $1.4 billion would be needed for production of 3 million tons.
The committee was informed that the Ministry of Industries and Production has initiated a comprehensive stock-taking process at the steel mills.
One particularly distressing point raised during the meeting was the abandonment of PSM equipment for four to five years, as pointed out by committee members.
Several incidents of theft, including the theft of copper worth Rs. 4.7 million were brought to the committee’s attention. PSM officials said a case involving the theft of 3 tons of copper led to one officer and two employees being found guilty and subsequently dismissed. Officials also informed the committee that goods worth Rs. 12.8 million had been stolen over a span of two years.
Questions were raised about the lack of responsibility attributed to security personnel in the theft incidents, with committee members inquiring about the number of security personnel deployed at the steel mills. Officials said that 500 personnel were assigned to ensure security. The committee chairman also highlighted incidents of theft in the steel mills, including the use of cranes in the thefts.
The committee expressed frustration over the non-implementation of recommendations regarding the privatization of Pakistan Steel Mills, emphasizing the need for accountability and action. Senator Fida Muhammad particularly criticized the failure to follow committee recommendations and alleged unauthorized scrap selling.
The meeting concluded with a discussion on sugar prices, which are determined by provincial governments. Officials from the Ministry of Industries and Production stated that sugar prices had risen due to smog and court orders. The Federal Board of Revenue’s track and trace system was praised for its ability to monitor real-time sugar stocks, potentially resolving issues related to re-importing sugar.
Furthermore, it was revealed that the Punjab government is working on new legislation to regulate sugar prices, marking further developments in the sugar industry.
Source: Pro Pakistani