ISLAMABAD: The Senate Standing Committee on Industries and Production blamed on Saturday the management of Pakistan Steel Mills (PSM) for the financial crisis faced by it.

A meeting of the committee, presided over by its chairman Senator Ishaq Dar, asked the PSM management to renegotiate rates with raw material suppliers and freight companies in order to avoid such a crisis in future.

Mr Dar said that although a decline in prices of raw material and freight charges at the international level had caused huge losses to the PSM, these were part of routine business and the management had to be aware of the situation.

The committee asked the Ministry of Industries and Production and the PSM management to chalk out a roadmap to bring the company out of the current financial crisis.

Industries and Production Minister Mian Manzoor Ahmed Wattoo informed the meeting that his ministry had a supervisory role in the affairs of Pakistan Steel.

‘PSM has its own board of directors to take decisions,’ the minister said, adding that the ministry had been issuing directives to the senior management of PSM and warning it of financial losses ‘time and again’.

PSM chairman M.M. Usmani briefed the meeting on mills’ operations and presented an inquiry report on financial losses incurred by it.

Members of the committee opposed the idea of privatising PSM and observed that it had contributed a lot to the country’s economy.

Mr Dar assured the management that PSM would be provided all possible support to improve its financial position.

A sub-committee headed by Senator Haroon Akhtar Khan was set up to review accounts of Pakistan Steel in the light of the presentation given by its chairman.

The members pointed out that since the inquiry report had held the former chairman of PSM responsible for taking all financial decisions, action should be taken against him.

They also recommended that the name of former chairman should be placed on the ECL and the audit should be completed as soon as possible.

The meeting was attended by Senators Adnan Khan, Gul Mohammad Lot, Mir Hasil Khan Bizenjo, Mrs Semeen Siddiqui and Haroon Akhtar Khan.