Pakistan Steel Mills (PSM) has become Pakistan's first Govt institution after PIA to file continuously for losses. So far, it has reached to a record $5 billion debt as losses over the last 3 years have doubled.
Moonis Elahi, a young Pakistani parliamentarian, has denounced incumbent government's decision, and termed it a strategy to create opportunities to plunder Pakistan. The country's largest industrial complex would be leased to a private firm which succeeds in presenting the highest revenue sharing proposal. It has been revealed that almost 5000 employees would be laid off. A transaction committee on Monday discussed the various options and the lease term would be finalized on Tuesday 17th January 2017.
The present state of PSM is due to over hiring, unchecked corruption, inefficiency and the Govt's non serious attitude towards it said Moonis Elahi. The PSM’s accumulated losses and liabilities, which stood at Rs26bn at the end of 2008, have increased to around Rs415bn, including Rs166bn payable liabilities.
The government has injected over Rs85bn out of the federal budget for various bailout packages since then. Since the PMLN's government, PSM's losses have doubled and the talks to lease or sell it had started surfacing quite early. It has been decided that the land would remain Govt property whle the building and machinery will be given on lease.
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