THIS is with reference to the editorial “PSM ‘revival?’” (Oct 31). A compre-hensive plan for the revival of Pakistan Steel Mills (PSM) was prepared by the government in 2013. This plan was adopted in toto by the succeeding government. A timetable for all the concessions that were allowed and release of funds was also approved by the Economic Coordination Committee (ECC).

PSM was to make monthly payments for its gas consumption for the running months, but the arrears were rescheduled to be paid after two years. Unfortunately, the timetable was not followed.

However, the PSM, through the hard work of its workers and management, achieved its break-even position at 70 per cent of its production capacity. It was on that day that the then minister for petroleum and natural resources ordered disconnection of the gas supply, bringing production to a halt. While the current gas payments were regularly paid, the ministry demanded that the outstanding gas dues should be cleared by selling the PSM land.

I was then a member of the Senate Standing Committee on Production. And that committee in several meetings and reports demanded that the ECC decisions should be followed, and the gas supply should be restored. The supply remains disconnected till date.

The Sindh government made an offer to purchase the PSM, and formed a committee in this regard. The federal government accepted the idea of handing PSM over to Sindh, but refused to hold detailed meetings for the handing-over process. Many important items, like import duty on steel, gas tariff, clearance of arrears, inventory position and others, had to be settled between the provincial and federal governments.

Despite reminders, the government in Islamabad did not discuss these issues. In disgust, during a Senate Standing Committee meeting, I told the minister in-charge that PSM was not a paan shop. Terms and conditions had to be discussed and agreed upon, but nothing happened.

It is worth mentioning that another steel mill of the same capacity, tech- nology and suppliers was put up at the same time in Isfahan, Iran. That mill is producing 30 million tonnes of steel per year. Something somewhere must have gone wrong with our steel mill.

Taj Haider
Islamabad

Published in Dawn, November 24th, 2023