PSM Huge Burden On Taxpayers, Says Hammad Azhar
Fida Hussnain (@fidahassanain) Published June 04, 2020 | 05:21 PM
The Minister for Industries Hammad Azhar says the government is going to privatize Pakistan Steels Mills to bring it out of losses as it is huge burden on taxpayers.
ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-June 4th, 2020) Pakistan Steels Mills (PSM) was a huge burden on taxpayers, Minister for Industries and Production Hammad Azhar said here on Thursday.
The minister termed political point-scoring over Pakistan Steel Mills privatization as unfortunate.
“Pakistan Steels Mills is a huge burden on taxpayers,” said Hammad Azhar, pointing out that the government decided to privatize the national the national entity to bring it out of losses.
He expressed these views while addressing a press conference.
Minister for Industries and Production hammad Azhar said that the salaries amounting to Rs55 billion were paid to around 9,000 employees of the non-operational mill.
He said that a Rs90 billion bailout package was given to the mill in the past in an effort to revive it but all efforts failed. The Federal government was doling out Rs700 million every month to pay salaries and interests as the debt of the Steel Mills was ballooned to Rs230 billion.
“At least 15 parties have shown interest in purchasing stakes in Pakistan Steel Mills,” said the Minister, pointing out that only the core Steel Mills operation would be privatised and not the land of the entity.
He said the employees of the Steel Mills will be relieved in two phases with payment of their retirement dues and one month salary.
Earlier, on June 3, the government approved retrenchment of all the 9,350 employees of the Pakistan Steel Mills (PSM).
A decision to this effect was taken at a meeting of the Economic Coordination Committee (ECC) of the cabinet presided over by Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh.
“The meeting gave a go-ahead to a ‘full and final’ human resource rationalisation plan for the PSM employees in accordance with the judgements and observations of the Supreme Court of Pakistan and other courts hearing the cases involving the PSM,” ECC added.
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