ISLAMABAD: Federal Minister for Production Anwar Ali Cheema said on Tuesday that the government should rather get rid of the Pakistan Steel Mills, instead of struggling to keep the loss-making entity going.

“There are too many issues with the PSM and the government cannot rectify them despite all sincere and serious efforts,” he said.

Talking to newsmen in his office, he said PSM's problems included the burden of 21,000 employees, lack of productivity and wastage during production and, most important of all, incompetent management.

When asked why was his ministry, which was responsible for the mills, not able to put in place a professional and competent management, Mr Cheema said it was a complicated matter. The PSM, he said, was more under the control of the Cabinet Committee on Restructuring of State-Owned Enterprises headed by Finance Minister Dr Hafeez Shaikh, than the ministry of production.

He said the PSM needed many reforms and a lot of financing.

“The PSM board had forwarded three names for appointment as CEO of the mills. I have rejected all of them and sent a note to the prime minister who is the competent authority.”

Mr Cheema said his role in the appointment of CEO or board members was limited. His ministry, he said, had already submitted a report calling for downsizing in the PSM and setting up of a new board under a new chairman. A professionally sound CEO was required to take administrative decisions.

“But all these things and injecting huge finances are beyond the government's scope because too many hitches and problems are involved,” Mr Cheema said. “We should have given it to the Russians,” he added.

Earlier, the minister presided over a meeting of the board of Pakistan Industrial Development Corporation.

The meeting was informed that for the first time the ministry of production had initiated audit of all 10 subsidiaries of the corporation.

An official said misappropriation of Rs530 million had been detected in financial accounts of the Gujranwala Tools and Dyes Centre and Ceramics Centre, Gujranwala.

“Cases have been referred to the FIA as CEOs of these companies are involved in misappropriation of funds,” PIDC's director Khalid Mehmood told newsmen.

He said the audit of Furniture Pakistan and the Gems and Jewellery Centre were almost complete, while that of Pakistan Stone Development Company and National Industrial Parks (NIP) would be carried out in the next round.

He said the NIP had been allotted 250 acres of land in Karachi and other places since 2006 to develop small industrial clusters and work was expected to start soon.

The PIDC board decided to focus on setting up small and medium industries, instead of large industrial units, which the PIDC has been setting up for about 50 years.