KARACHI, July 2: Prime Minister Mir Zafarullah Khan Jamali has said that it would be his government’s endeavour to ensure that vital public sector organizations like the Pakistan Steel Mills are kept free from political interference, and extended the assurance to meet the PSM’S legitimate requirements.

He appreciated the performance of the largest public sector organisation, the PSM, and promised to look into its request for waiving the mark-up of Rs7.767 billion.

He spelt this out during a visit to the PSM on Wednesday during which he was accompanied by Sindh Governor Dr Ishrat-ul-Ebad, Chief Minister Sardar Ali Mohammad Khan Maher, Balochistan Chief Minister Jam Mohammad Yousuf and Industries and Production Minister Liaquat Ali Jatoi.

Mr Jamali recalled that political interference had turned the vital public sector project heavily indebted and non-profitable in the past.

He also assured support to those who had made the organization into a living example of how good governance could change the face of a public sector establishment.

The prime minister reiterated that his government would continue the economic policies of President Gen Pervez Musharraf.

The profitable performance of the PSM, he said, would go a long way in achieving the objectives of the government’s housing policy and other development projects.

Mr Jamali noted with satisfaction that financial position of the PSM had improved and it had come out of the red. He assured his government’s all possible support to the PSM in its future expansion projects.

He pointed out that the Pakistan Steel had many critics when it was started and there were some even today. But even though this massive organization had a chequered history, by and large, it had gone forward very steadily and was now playing a vital role in the country’s economy.

The Pakistan Steel was not merely the lone indigenous steel-making plant in the country and the base for the country’s engineering industry, it also made a substantial contribution to the total national production, he said in a written text.

The benefits accruing from Pakistan Steel’s good performance and its profitability were not confined to this organization alone but affected the entire economy of the country, he further said. In this context, he cited the establishment of downstream industries which depended upon the increased output of the PSM.

Mr Jamali said the PSM was a harbinger of Pakistan’s determination to join the ranks of the developed nations of the world.

He appreciated the Pakistan Steel’s “remarkable progress in its production and sales”, and noted that the previous 76 per cent capacity utilization had reached the sustained level of 90 per cent. Sales, which were generally less than Rs15 billion per annum before restructuring, had now reached to a record level of Rs22 billion.

Mr Jamali noted that the PSM had made another record by clearing the huge loan of principal amount of Rs11.35 billion to the banks on the last day of the financial year. He asked other public sector organizations to follow this example.

As the PSM was now poised for expansion in its capacity, the premier hoped the short-term and long-term expansion plans of 1.5 million tons and 3 million tons per annum would be completed on schedule.

Earlier, Mr Liaquat Jatoi said the PSM was highly politicized organization in the past and the managements had been under pressure due to outside influence which had resulted in poor work discipline and totally unsatisfactory operational results.

By the end of 1999, the PSM had reached the stage of near closure when it was decided to salvage it after restructuring. A restructuring committee was formed to suggest ways and means of salvaging this sinking ship, he recalled.