National Assembly’s Standing Committee on Industries and Production it was informed that the government was still formulating a plan to revive Pakistan Steel Mills (PSM).
The Privatisation Commission (PC) Secretary Sardar Ahmad Nawaz apprised the committee that two models were under consideration for the revival of Pakistan Steel. The first option is to ensure the resumption of operations at PSM and the second alternative is to lease it out.
Clearance of liabilities worth Rs 170b is the major hindrance being faced, the PC Secretary stated. A detailed progress report will be shared with the committee next month, he mentioned.
The response provoked an irritated response from Committee Chairman, Asad Umar. He replied that 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 mentioned that PSM is the country’s largest industrial unit, and has been generating losses of Rs 1.4b on a monthly basis despite being non-operational since the last 21`months.
Another committee member, Abdul Hakeem Baloch, voiced concerns regarding the federal government’s decision to allot 1,500 acres of industrial development land of Pakistan Steel for China-Pakistan Economic Corridor (CPEC) projects. This was done without taking the provincial government into confidence, he stated, adding that the Sindh government gave around 17,000 acres to Pakistan Steel only.
Financial closure of CPEC projects is under threat due to a spat between the centre and the province as stated by Asad Umar. He proposed that the issue needs to be resolved peacefully or be put forth to the Council of Common Interests (CCI).
