ISLAMABAD: The National Assembly’s Standing Committee on Industries and Production learned on Wednesday that the government was still devising a plan to revive Pakistan Steel Mills.

Privatisation Commission Secretary Sardar Ahmad Nawaz informed the committee that the commission was working on two models to revive Pakistan Steel. The first model was to make it operational again while the second model was to lease it out.

However, the major hurdle was clearing its liabilities that were around Rs170 billion, he said. He added that detailed progress on both models would be presented before the committee in one month.

The response irked the committee chairman, Asad Umar. He said the committee has been discussing the issue for almost four years.

“At least the government should have taken the recommendations made by this committee seriously,” he said.

He added that Pakistan Steel is the country’s biggest industrial unit, but has not been operational for the last 21 months. Every month Rs1.4bn is added to its losses, he said.

Another committee member, Abdul Hakeem Baloch, expressed concern about the federal government allocating 1,500 acres of industrial development land of Pakistan Steel for China-Pakistan Economic Corridor (CPEC) projects.

“It was done without taking the consent of the provincial government,” he said, adding that the Sindh government gave around 17,000 acres to Pakistan Steel only.

Mr Umar said financial close of CPEC projects was in the doldrums due to a tussle between the province and the centre. He suggested that both parties should either settle the dispute amicably or take it to the Council of Common Interests (CCI).

Meanwhile, committee members expressed their concern about the premium – usually termed “on money” – that consumers have to pay for early delivery of vehicles.

Qaiser Ahmed Sheikh of the PML-N said that buying cars was an issue of ordinary citizens. Mr Sheikh said one reason for the market manipulation by auto companies was their monopoly.

“This is actually our failure. We have failed to develop competition in the auto sector by either bringing in new players or increasing production,” he said.

Mr Umar told Engineering Development Board (EDB) CEO Tariq Ejaz Chaudhary that the weakest argument presented in this regard was that car dealers were collecting on money without the knowledge of car assemblers.

“How is it possible that the senior management of auto companies was unaware of what their dealers were doing?” he said.

He directed the EDB CEO to get a specific answer from auto companies along with their proposals to abolish on money.

The committee was informed that several measures have been suggested under Auto Policy 2016. As a result, auto companies have started the practice of refunding some money in the case of late delivery.

EDB officials informed the committee that only Honda Atlas Cars has so far paid the penalty of Rs15,000 for late deliveries. Indus Motor Company has agreed to pay the amount while Pak Suzuki did not give any response.

EDB officials told Mr Umar the new policy was not binding on car assemblers and that was the reason for the government’s lenient approach in this matter.

“We recommend that there should be a clear-cut government policy in this regard and the auto policy should have the backing of the law,” Mr Umar said.

Published in Dawn, March 23rd, 2017