REFERENCE the news report ‘Another bailout package for PIA allowed’ (Jan 19). Although the national carrier continues to perform poorly, it remains a beneficiary of regular government bailouts.

On the other hand, Pakistan Steel Mills was given a step-motherly treatment by being denied the necessary bailout. The mill was shut down by the government rather suddenly in June 2015 after gas supply was stopped by the SSGC for non- payment of their bill.

Had the gas supply continued and funds were released for the purchase of essential raw materials etc, as was requested by its board, the plant would have been able to attain production capacity of 75pc, which was a break-even point. But the government preferred closing down the largest industrial unit of the country without an alternative plan while it has been disbursing salaries to the idle employees of the mill out of its own budget.

The resources squandered on payment of salary to idle workers should have been deployed towards making the plant operational.

After the closure of the mill, the domestic steel production has been replaced by imported steel, involving billions of dollars of scarce foreign exchange. Is this not the height of insanity of economic policymakers?

Kulsoom

Karachi

Published in Dawn, January 20th, 2017