— Hammad Azhar declines privatisation reports, says bidding for PSM joint venture will be held later on this year

ISLAMABAD: Federal Minister for Industries and Production Hammad Azhar on Wednesday turned down reports concerning privatisation of Pakistan Steel Mills (PSM) and stated that the steel mill will be run in cooperation with private partners.

While rundown the Senate’s Standing Committee on Industries and Production, Azhar clarified that PSM has actually not been privatised which bidding for a joint venture will be held later on this year.

The minister for markets and production even more stated that out of the 12 international business which revealed interest in PSM, 6 business have actually currently checked out the steel mills.

Azhar stated that some lands belonging to the steel mills were being rented out, including that big choices required to be taken in order to make PSM self-reliant.

He even more notified that in 2008 Pakistan Steel Mills had a fund of Rs10 billion, after which sales started to drop due to low steel costs on the planetmarket He stated that while sales of PSM were dropping, 4,500 steel mills staff members were made long-term in 2010 which added to its financial concern.

In 2010, typical production of PSM dropped to around 40 percent, which later on even more dropped to simply 6 percent. The PSM was closed down by the Pakistan Muslim League Nawaz (PMLN) federal government in 2015, stated Azhar.

Azhar stated that while the PSM stayed non functional, working and retired staff members kept getting billions of rupees in incomes and pensions for a duration of 5 years.

The minister even more stated that the origin of PSM’s issues is the high variety of staff members and the truth that it has actually not broadened to its capacity.

“Out of 19,000 acres owned by PSM, the PSM plant is established on just 1,700 acres of land. There is a lot of room for expansion,” he stated including that PSM’s deficit was more than Rs225 billion.

The minister additional notified that Pakistan’s steel usage stands at 7 million tonnes including that in spite of numerous steel mills being functional in the nation Pakistan still imports iron and steel items to satisfy its need.

The committee was notified that in 1973, 19,013 acres of land were acquired for PSM. Out of the 19,013 acres, 10,273 acres were utilized to established plant and other allied services while 8,071 acres were set aside for steel mills area. In addition to that a commercial park has actually been developed on 1,049 acres of land.

Senator Sirajul Haq prompted that rather of privatising PSM, the state owned entity needs to be made feasible and a Ceo (CEO) need to be selected for it at the earliest. He likewise prompted the federal government to restructure the energy expenses of PSM.

On The Other Hand, PSM former chairman Senator Abdul Qayyum recommended that a few of PSM’s land need to be offered to clear its financial obligation.

Throughout the conference, committee members revealed discouragement over the federal government’s handling of the steel mills and required that the problems dealt with by retired staff members of the steel mills need to be solved at the earliest.

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