News
Saturday, June 12, 2010
PM approves PSM bailout package* Gilani rules out possibility of closing down Pakistan Steel Mills
* Says no political interference will be allowed in PSM affairsStaff Report
ISLAMABAD: Prime Minister Syed Yousaf Raza Gilani on Friday approved the bailout package for the Pakistan Steel Mills (PSM) at a special meeting held at the PM House.
The meeting, chaired by the prime minister, reviewed several proposals of the Industries and Productions Ministry on how to deal with the financial troubles plaguing the PSM.
After the discussion, PM Gilani stated that the steel mill was an important national asset and would not be allowed to close down. The steel mill has to be managed professionally and the government will not tolerate any politicisation or interference in its affairs, the prime minister told the meeting.
He stated that the PSM should be restructured and revived as a commercially viable entity in accordance with the decisions taken by the federal cabinet. He also directed the Finance Ministry to monitor the bailout package and its subsequent utilisation to ensure transparency.
Earlier, Industries and Production Minister Mir Hazar Khan Bijarani told the meeting that the total cost of restructuring the PSM was lower than what would be needed to close it down and settle all its financial liabilities.
While, Labour and Manpower Minister Syed Khurshid Shah informed the PM that at least 17,000 workers would have to be laid off if the mill was to be closed down.
Fazalullah Qureshi, the chairman of the PSM board of governors, told the meeting that the mill was relying only on imported raw material for the last three years, which was the biggest drain on its resources.
He said the local supply of iron ore had been disrupted due to the dangerous security situation in various parts of the country.
The chairman said the ongoing global financial crisis and fluctuations in prices at international level had also done considerable damage to the financial standing off the PSM.
PSM Chief Executive Malik Asrar Hussain also briefed the meeting about the financial situation of the PSM. He said that supply of raw material for the mill would have to be ensured in order to keep it operational. He said the PSM was expected to make a recovery by the third quarter of the next year if the restructuring and bailout plans were implemented.
Finance Minister Dr Abdul Hafeez Shaikh, State Minister for Industries and Production Dr Ayatullah Durani, Finance Secretary Salman Siddique and Secretary Industries and Production Abdul Ghafar Soomro also attended the meeting.
Courtesy www.dailytimes.com.pk