Karachi:
Members of a Senate Panel have called on the government to speed up its decision on the future of Pakistan Steel Mills (PSM), which has been non-functional for years.
The Senate Standing Committee for Industries and Production visited PSM on Saturday under the presidency of Senator Aon Abbas Buppi.
The committee toured in various plants within PSM and reviewed the organization’s current debt challenges, payment delays and expenses and listened to the employees’ unions.
They held discussions with PSM chairman Asad Islam Mahni and other officials on major issues facing PSM. During a briefing, the Mahni informed the committee that in 2024 the mill had collected a total loss of RS600 billion and paid the RS20 billion annually in interest on current loans.
He said the mills owe RS89 billion to the National Bank of Pakistan (NBP), as most of the NBP loans have been used to cover expenses, including wages for 934 current employees.
The officials told the committee that the government is also considering two projects:
One involves the resuscitation of the mill using the Russian company Industrial Engineering LLC, which would use bow and sprang ovens for restoration.
The second project is considering running the mill after appointing a review company to evaluate its viability.
The committee also met with representatives of the Workers’ Association, who assessed them about the difficulties facing both current and dismissed employees. In order to tackle their concerns, the committee formed a subcommittee that was tasked with holding conversations with the management of workers’ complaints.
The Senate Committee appreciated the current management’s efforts to reduce PSM’s expenses.
However, it expressed anger over the continued events of theft in the organization and instructed the authorities to assess the losses incurred from such activities. It also recommended to speed up the disposal of non-functional or expired assets that are no longer in operation.
The committee was informed of the arbitrary allocation of PSM land by the Sindh government a few years ago. It expressed concern about the award of 1,370 Acres and 400 hectares of undisputed land to local villages, stating that such award cases should be referred to the Council for Common Interest (CCI).
The committee toured various plants within Pakistan Steel Mills and recommended that the government accelerate its decision on the future of the institution.
