KARACHI: The Ministry for Industries and Production on Thursday said that if the government failed to provide funds to the Pakistan Steel Mill (PSM) by September 30, the mill would shut down completely.

The Ministry for Industries and Production has moreover provided the Finance Ministry with three options regarding the future of PSM. The Economic Coordination Committee would analyse the three options today.

The first option in the summary provided by the industries ministry states that if the government wants the PSM to keep operating, it should immediately release Rs29 billion for the organisation.

The second option refers to a completely shutting down of the PSM, in which case all employees would have to be paid Rs56 billion in total.

The third option proposes that the PSM be handed over to the private sector.

The summary further states that at present, the Steel Mill is working at 15 per cent of its total capacity, adding that if the government fails to provide the required amount by September 30, the PSM may completely shut down.

Pakistan Steel Mills has had a rickety past few years, failing to come up with any positive results despite large grants given to it by the government.

In the last fiscal year, the company faced another loss of Rs23 billion as liabilities surged to Rs105 billion as of June 30, 2013.

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Comments are closed.

Comments (6)

Parvez
August 22, 2013 4:26 pm

Privatise it immediatly.............even if you have to give it away free and possibly that's how its being engineered.

Omar
August 22, 2013 5:36 pm

Privatization is the best solution for our Govt. owned institutions . At least these funds will be spent on common man , rather than massive corruption in these white elephants ...

AZ
August 22, 2013 8:12 pm

This is another type of corruption, If PSM goes down who will benefit most out of it ?

Ittefaq Group will benefit most out of it, this will always happen when the prime minister of pakistan will directly have competition with govenment owned companies

Ittefaq Steel mills vs Pakistan Steel mill

Another one goes down, long live pakistan long live corruption.

muzammil ullah khan
August 22, 2013 9:03 pm

May as well shut it down . Govt will save money .

Imtiaz Hydari
August 24, 2013 12:20 pm

Why is our reaction to any suggestion couched in emotional and inflammatory language? Clearly something needs to be done with PSM. Solutions must include various options. Options must be prepared by people with capability and knowledge Does the Ministry of Industry have the required qualification or the independence? I dobt that very much. If it did, solutions would have been prepared and presented a long time back. I would recommend a proper study clearly identifying and quantifying the options should be prepared by a qualified independent team of experts on the basis of which action should b taken b the Government. One more thing- when will those responsible for the massive corruption resulting in the debacle of PSM, will be exposed and punished? Can we first have the complete facts before any action?

Manan
August 25, 2013 1:54 am

@muzammil ullah khan: and what abt 12000 employess and their childern and families??? it is easy to say just shut down but think abt it what will happend....

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