ISLAMABAD: The Supreme Court of Pakistan on Thursday questioned the government plan to run the Pakistan Steel Mills (PSM) on public-private partnership and sought a report from the federal government in this regard.

A three-member bench, headed by Chief Justice Gulzar Ahmed, while hearing the PSM employees' case, told the federation's counsel that "what you are going to do will lead to disaster. You are dealing with this important matter poorly."

The chief justice remarked that according to the government lawyer, Section 11 of the Industrial Relations Act, 2012, will create obstacles in this matter but in court's view it will be the main hurdle.

He said that due to this plan there will be more than 500 cases in courts and the government would have to give jobs to the same people.

The additional attorney general informed the court that the cabinet had not yet decided to lay off all employees of PSM.

Justice Ijazul Ahsan said according to the plan the government would lay off 95 percent of the employees and make fresh recruitment on contract basis.

At present, 320 PSM-related cases are pending before the high courts and 29 in Supreme Court, he added.

The PSM counsel told the court that Rs40 billion was required for the implementation of public-private partnership plan.

The court sought a report from the PSM, and adjourned the hearing for four weeks due to ailment of defence counsel Kamran Murtaza.

In the last hearing, the court had barred the federal government from selling the PSM's land in order to pay gratuity and provident funds to its former employees.

The retired employees of the PSM in 2017 had filed a petition before the SHC and contended that they were not being paid their gratuity, leave encashment and provident funds since 2013.

They had submitted that gratuity and provident funds of retired employees had not been paid by the PSM despite court's orders.

They had also claimed that the PSM had leased out its land worth billions of rupees but the retired employees were not paid their pension benefits and other dues.

The SHC in August this year had ordered the seizure of the accounts of the Ministry of Production till payment of gratuity and outstanding dues of over 850 retired employees of the PSM.

The federation has challenged the SHC's order before the apex court and had also filed a review before the High Court.

Copyright Business Recorder, 2020