ISLAMABAD: Demanding an inquiry into the mismanagement and corruption in the Pakistan Steel Mills (PSM) from the period (2006-18), the Pakistan Steel Mills Corporation (PSMC) Stakeholders Group has questioned the role of PTI government in the mills’ revival.
In a letter written to the Senate’ Standing Committee on Industries and Production, the group had claimed that contrary to Prime Minister Imran Khan’s vision, which he had shared prior to the general elections 2018 regarding revival/privatisation of PSM, the ruling party had done nothing during the past 17 months.
Rather, the government had added over Rs56 billion in liabilities to the mills that was already facing over Rs460 billion liabilities during the 10-year period (2008-2018), the letter stated.
The stakeholders group, in the written correspondence, alleged that Adviser to the Prime Minister on Industries and Production Abdul Razak Dawood was creating hurdles in the PSM’s revival plan.
Dawood had compromised with the people at fault, who were involved in PSM’s losses/payables debts of over Rs460 billion during 2008-18, and were also beneficiaries (having interests in Aisha Steel, ISL, Auto Group and others) of the PSM’s closure, it was further alleged in the letter.
The mills’ revival plan adopted by the MoIP was leading towards its further financial disaster, the group said and added the case was fit enough to be investigated by the National Accountability Bureau (NAB) to identify the persons at fault and their facilitators in the power corridors.
During a recent meeting of the Senate’s committee, convener of PSMC Stakeholders Group Mumrez Khan had alleged Minister Razak Dawood of facilitating the revival plan of private steel company Al-Tuwairqi Steel by providing undue gas and other facilities.
However, the adviser, who was also present in the meeting, had rejected the allegations, saying he had nothing to do with the proposed revival plan of Tuwairqi as the plant was shut down even before the sitting government came to power.
Dawood rejected the allegations leveled against him by the group during the meeting.
In a reply to the questions raised by the group, the MoIP claimed that the stakeholders group had not shared any revival plan of PSM, despite claims of having complete plan to run the mills in profit.
Mumrez Khan, however, informed the committee that the plan was shared with the ministry multiple times but, since the adviser was not serious in reviving the mills, the ministry was going after unworkable plan.
The stakeholders of the group also suggested the ministry to early reconstitute the Board of Directors (BoD) of PSM and appoint a professional management for three to five years.
It also alleged that the present BoD, the adhoc management of PSM and the ministry had not initiated any measures to revive the mills or investigate the factors leading to the mill’s losses from 2006 to 2018.
Keeping in view the 17 months performance of the incumbent government, it had wasted time and money, causing over RS 56 billion more liabilities to the mills with Rs120 million per day losses.
The PSMC Stakeholders Group earlier had accused the previous government of Pakistan Muslin League-Nawaz of closing the mill since June 10, 2015, which was once a symbol of excellence and pride for the nation.
As a result of complete shutdown of the mill, not only the employees- both retired as well serving- had fallen victims, but also the suppliers, dealers and all those having stakes in the successful operation of the mill continued to suffer immensely, the group further stated in the letter.
