The Lahore Chamber of Commerce and Industry has expressed deep concern over deteriorating state of affairs of the Pakistan Steel Mills Corporation (PSMC) and urged the government to work out a plan for early revival of this strategic asset of the country. "The country cannot afford to lose this important public sector enterprise that is not only an organization but also an important strategic asset of the country," said LCCI President Abdul Basit in a statement on Monday.
The 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 incompetent management, he said. He said the worst crisis of Pakistan Steel Mills is a national tragedy and could be very dangerous for the defence sector.
Due to almost no production by the PSMC, the domestic industry is relying on imported hot rolled, cold rolled and galvanized steel and huge foreign exchange is being spent for this purpose, he said. The Mills' crisis could be handled through good policy approach but it seems that some elements are busy in tarnishing soft image of the present regime by destroying this important public sector enterprise, he added.
In view of the PSMC's huge loss of around Rs 600 billion per annum the government should take measures on war footing to make this organization profitable. He said that in advanced economies like the United States, United Kingdom and Japan, the role of public state enterprises is minimal and private sector is the most important instrument of socio-economic prosperity.
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.