Pakistan Steel Mills: Important decision taken on national entity
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The caretaker government has initiated efforts to devise a revival plan for Pakistan Steel Mills (PSM), an entity that has remained non-operational since June 2015. This significant development was disclosed by the secretary of the Ministry of Industries and Production during a briefing session held by the Senate Standing Committee. The committee, chaired by Senator Khalida Ateeb, convened to discuss the pressing issue of PSM's future.
Caretaker Federal Minister for Privatisation, Fawad Hassan Fawad, expressed his interest in acquiring a presentation on the proposed revival plan for PSM. The secretary affirmed that the government is committed to the revival of this crucial industrial asset. This revelation sparked both hope and curiosity within the committee members.
However, the committee members were taken aback by the secretary's statement as they had previously been informed that the lack of gas supply and a substantial reduction in the workforce, from approximately 25,000 employees to a mere 3,000, had rendered PSM inoperative. Furthermore, the absence of a CEO and a Board of Directors at PSM since August 2022 added to the complexity of the situation. The committee requested that the revival plan for PSM be shared with them once it is finalized.
To shed light on the financial aspects of the issue, the Chief Financial Officer (CFO) of PSM provided a detailed breakdown of operational expenditures. He highlighted that the Steel Mill had ceased its operations in 2015, leading to zero production capacity in subsequent years. Although the fiscal year 2021-22 recorded a profit of Rs7.149 billion, primarily attributed to the revaluation of "Investment Property," the corporation had incurred substantial losses in the previous years. Gross losses were reported at Rs6.058 billion in 2021-22, Rs7.293 billion in 2020-21, Rs5.803 billion in 2019-20, Rs5.249 billion in 2018-19, and Rs7.469 billion in 2017-18.
The discussion within the committee highlighted the daunting challenges that lie ahead in resurrecting Pakistan Steel Mills, given its prolonged period of inactivity and financial setbacks. Nevertheless, the government's commitment to formulating a revival plan offers a glimmer of hope for the future of this vital industrial asset
