The Imran Khan led government has yet to prepare future plan for Pakistan Steel Mills (PSM) which remains non operational since June 10, 2015 due to a reduction in natural gas pressure by SSGC.
Prime Minister's Advisor on Commerce, Textile, Industries and Production and Investment Razak Dawood is scheduled to visit PSM and look into its account books and prepare a summary for the Prime Minister who is also Minister Incharge of Ministry of Industries and Production. The cumulative financial impact of losses and liabilities of PSM is about Rs 467 billion as of August 31, 2018 compared with RS 10 billion profit as on June 30, 2008. PSM is financially bleeding Rs 5 million per hour due to the government's indecisiveness on its future. The Mills accounts for 2014-15 are audited whereas audit of accounts for FY 2015-16, FY 2016-17 and 2017-18 are due. However, according to provisional unaudited accounts of 2017-18 (July 2017 to April 2018), PSM's liabilities stood at Rs 198 billion with zero production. The strength of employees was 4,531 as of June 30, 2017. The liabilities of employees were about Rs 14.238 billion of which Rs 5.380 billion was gratuity, Rs 7.691 billion provident fund and Rs 1.168 billion other expenses.
PSM's suppliers have not been paid their outstanding dues amounting to billions of rupees as the management has no funds to accommodate them. Due to financial constraints, PSM is unable to pay salaries and the Government of Pakistan has been paying net salaries.
National Accountability Bureau (NAB) and FIA had initiated inquires against "multi-billion financial dacoity" in PPP government during 2008-13 but no action has been taken against any of the accused so far. While 23 General Managers are required to run the affairs of PSM yet at present, there are only two General Managers in PSM - one is performing as acting Chief Executive Officer (CEO), whereas the other is acting Chief Financial Officer (CFO) who is facing an inquiry. His contract will be expiring in two months. "Due to attrition and no fresh induction since long, PSM is facing a serious situation of Human Resources (HR), particularly in management cadre," said an official of the MoI&P.
The Board of PSM will meet on Friday (today) to consider appointment of Auditor to conduct the audit of financial statements of PSM for the year ended June 30, 2016 and 2017 along with statement of compliance with Public Sector Companies (Corporate Governance) Rule, 2013. The Board will also consider following issues related to NIP: (i) price determination of un-allotted NIP and its validity; (ii) Board Committees on NIP and CPEC-SEZ affairs; (iii) revision of rate of Rs 158.347 acres land leased out to Port Qasim Authority (PQA) in view of "loss of Rs 892.7 million to PSM due to lease out of land below market rate"; (iv) establishment of federal prioritized SEZ on PSM land in Karachi; and (v) valuation report of lease money for vacant plots in section-II ( developed land) of downstream industrial estate of PSM.
The sources said, appointment of Chief Executive Officer, change in lawful Attorney of Pakistan Steel and demand of CBA to provide vehicles to CBA office bearers is also on the agenda. According to sources, deliberations on inquiry report of acting ACFO in pursuance of directives of previous board meeting and decision for further extension in his contract will also be discussed. PSM Board Chairman has written a letter to Secretary Industries and Production, saying although, PSM is non-operational since June 2015, being an important organisation on the list of privatisation, serious issues related to finance, assets, liabilities, human resource, litigation before the courts, affairs relating to coordination with Privatisation Commission etc are being faced by the Board in the absence of regular CEO and CFO.
A similar letter has also been sent to the Prime Minister's Advisor Abdul Razak Dawood, who termed PSM as a big financial burden on the national exchequer.
Comments
Comments are closed.