Pakistan Steel Mills Stakeholders Group appeal to the govt to avoid further financial losses

KARACHI, Aug 27 (SABAH): Pakistan Steel Mills Corporation (PSMC) Stakeholders Group has appealed to the federal government for immediate intervention to avoid further financial loss in Pakistan Steel Mills (PSM).

The group has also demanded the cancellation of the appointment of additional charge which has been given to Additional Secretary-1 Ministry of Industries and Production (MOI&PK) Asad Islam Mahni, whom they have called violation of State Owned Enterprises (SOs) Act, 2023.

The letter has been written by Convener PSMC Stakeholders Group Mumrez Khan to Chairman National Assembly Standing Committee on Industries and Production Syed Hafeez-Ud-Din and Secretary National Assembly Standing Committee on Industries and Production Malik Amir Hussain. The copy of the letter has also been sent to the Federal Secretary Ministry of Industries and Production, Government of Pakistan, Islamabad, Saif Anjum.

Serious concerns over the current management of PSM have been expressed in the letter.

The letter stated that Mahni’s appointment as CEO was made on May 3, 2024, without the approval of PSM’s Board of Directors (BoD) which has further exacerbated the already critical financial condition of the mill. According to the letter, PSM is making daily losses of over Rs 140 million during the financial year 2022-23, which has been ongoing since July 2023, resulting in total losses exceeding Rs 40 billion.

The group blamed the losses on the inaction of the Ministry of Industries and Production and non-organisation of necessary meetings to resolve the mill’s financial and operational issues. The stakeholders also expressed disappointment over the removal of the Corporate Secretary without the approval of BOD.

The stakeholders further argued that these measures have further destabilized the organization, leading to operational inefficiencies and financial losses. In their appeal, PSMC stakeholders group has demanded the government that an able and experienced BOD should be constituted and there should be investigation of PSM losses from 2008 to 2024. They also called for accountability measures against those responsible for the degradation of the mill.

Stakeholders emphasized that the rehabilitation of PSM is important for the economic stability of the country, and its rehabilitation will provide jobs for local technical workers. It will reduce the import bill, help the balance of payments, and end the monopoly of the private sector in the steel market. They also highlighted the potential benefits of providing materials at competitive prices to the engineering and construction sectors.

The letter also pointed out, “On August 16, 2024, the Standing Committee on Industry and Production had constituted a sub-committee to focus on PSM issues but no significant progress was made. Stakeholders have accused the Ministry of Industries and Production of misleading the SIFC Apex Committee and Parliamentary Committees regarding the real financial condition and management issues of PSM”.