Spokesman of Pakistan Steel has clarified the news published in Daily Business Recorder, dated 22-03-2013, that the losses in 2012-2013 are Rs 19 billion as compared with the losses of Rs 21.158 billion occurred in the previous financial year ie 2011-2012, inspite of Bailout Package No III.
The performance keep declined from 82 percent to 19 percent upto year 2011-2012 inspite of three bailout packages given which worth Rs 25 billion. The bailout package No IV, which was given in August-2012 after four months of joining of present Chief Executive Officer, was put into fact in November 2012 onwards.
Various external factors kept delaying the process of improvement which ultimately started in February-March 2013. The productivity has gradually improved to 25-30 percent which needs substantially more funds to sustain and improve further. Undue repeated focus on present CEO in an institution which is suffering losses since four years seem mis-planned, similarly repeated mention of his pay and allowances which are comparable to other CEO's and MDs of different government organisations also seem slanted. Change of board members of various Government Organisations has happened since last two months, without attracting much interest and being a routine issue. PSM is making all efforts to stay operative inspite of great financial difficulties. The PSM affairs should be viewed within the larger prospective of its mounting losses and liabilities since a major disruption which took place in 2009. It may further be recalled that PSM was in profit through consecutive years till June-2008. It has the potential to revive, provided all financial liabilities and mark-ups on previous loans are taken care of separately by allocating required funds for production without external financial encumbrances.
The bailout package No IV given in 2012-2013 worth Rs 14.8 billion had three segments. Firstly it contained Rs 4.5 billion as mark-up on previous loans, secondly Rs 6.5 billion were allocated on previously defaulted LCs and payment of utility bills, only Rs 3.8 billion were left for logistic, production and revival. PSM need a holistic view of essentially a financial issue like a whole sum package given to it in 1999-2000, which helped it to become profitable in short span of two to three years.-PR