LCCI urges government to take steps for revival of PSM

Lahore Chamber of Commerce & Industry (LCCI) while lamenting over miserable state-of-affairs of Pakistan Steel Mills (PSM), has urged the government to take immediate measures for its early revival. LCCI President Malik Tahir Javed in a statement on Wednesday said that worst condition of Pakistan Steel Mills is a matter of concern. Once Pakistan Steel Mills Corporation was highly profitable public sector enterprises and considered one of the largest steel producers in the country but at present, it is on the verge of collapse because of ignorance.
He said that policy makers should be well aware of the fact that Pakistan Steel Mills is not only a major source of steel products supply to the various domestic industries but also has vital importance for defence industry. The worst crisis of Pakistan Steel Mills is a national tragedy and could be very dangerous for the defence sector, he said.
He further said that in the absence of any production from Pakistan Steel Mills, domestic industry is relying on imported hot rolled, cold rolled and galvanized steel. As a result, huge foreign exchange is being spent for this purpose, he added. The crisis of Pakistan Steel Mills could be handled through good policy approach but it seems that some elements are busy to tarnish soft image of the present regime by destroying this important public sector enterprises.
Keeping in view the massive loss of around Rs 600 billion annually being caused by the Public Sector Enterprise (PSEs) government should take measures on war footing to make these organizations profitable. In advanced economies like the United States, United Kingdom and Japan, the role of PSEs is minimal and the private sector is the most important instrument of socio-economic prosperity, and there is continued growth of privately-run corporations.
The significance of PSEs cannot be ignored, in view of the fact that they remain the most employment-intensive and capital-intensive organizations, he added. He suggested formation of a committee of experts from public and private sectors to revisit strategy and adopt methods which could provide a new impetus to the PSEs. The committee should go deep into the broader political philosophy and vision under which the PSEs will be required to play their role in the new competitive environment, he added.