KARACHI: Led by Senator Hidayatullah, Senate Standing Committee on Industries and Production has recommended immediate bail out package of Rupees three billion for Pakistan Machine Tool Factory (PMTF) and write-off of Rs1.155 billion bank loans besides permission to induct manpower.
Other members of the Senate committee included Senator Aurangzeb Khan, Senator Mrs Khalida Perveen and Senator Mrs Kulsoom Parveen. The committee had a detailed visit to PMTF on Thursday.
Once very strong and successful public sector industrial entity, PMTF's decline started when it was placed on privatisation list in 1999, PMTF management said.
PMTF is facing financial crisis after very successful four decades since its commission in 1970. The decline in PMTF's production and sales is due to its shrinked capacity because of no modernization and upgradation of the plants and machinery since 1985, said PMTF's Chairman, Syed Mohiyuddin Kaukab and its Managing Director, Engr. Ahmed in their briefings to the Senate Committee.
The Managing Director explained that of the demanded Rs three billion package amount, around Rs one billion would be used for payment of dues (gratuity and provident fund etc) to the employees who had retired over last three years. They were living very difficult life for non-payment of their duties. And, he continued, for payment of salaries pending for last three months.
The remaining amount would be for purchasing inputs. PMTF workforce was very much competent to even manufacture very sophisticated machines along with modernization of the machines. But, they only need money. Chairman PMTF informed that Rs 7.5 billion orders for export of arms were in pipeline and would finalized soon. We have already received orders for export of 1100 arms. This would make this organisation capable to stand on its feet and continue the operations smoothly by meeting all its routine expenses at its own. We only want one time push. PMTF had so far contributed to the national exchequer billions of rupees in the shape of taxes, he added.
PMTM's Chairman said the organisation would be turned into a profitable one once again after one year if the demanded bail out package is granted at the earliest.
" We would go up to 80 percent capacity from 20 % if we get bail out," he committed.
He requested the Senate Committee to lobby for PMTF and get it removed from the privatisation list.
He maintained that since PMTF is on privatisation list since 1999, the buyers were reluctant to enter a deal in this environment of uncertainty.
Banks are also not ready to open our letters of credit (l/Cs) of PMTF for import of inputs. We have also been barred from inducting manpower. In 2000, the number of employees was 2,304. Now, they are only 1,014 and of these 435 are casuals workers.
He said PMTF was selling its international standard products (tools, machinery and arms) to the defence and to the engineering sector at forty percent of the import prices.
Chairman of the Senate Committee and other members assured the PMTF management that they would raise their voice in the Upper House of the Parliament for getting PMTF financial and logistic issues addressed within the shortest possible time.
The Chairman Senate committee opposed the proposed privatisation of PMTF, which is defence-cum-commercial engineering production organisation and enjoys the status of a strategic entity. It is very much known in the world for its best quality wide-range of products. Besides meeting the requirements of the country's defence, PMTF has contributed a lot in development of engineering sector and in the exports.
He said," our priority would be, PMTF should remain under the Ministry of Industry and Production and be revived. However, it is no problem if handed over to the Ministry of Defence."
He appreciated the PMTF management and the workers for successfully running this organisation for a long period and catering for even defence requirements.
PMTF's Chairman and the Managing Director in their briefings said Pakistan Machine Tool Factory (PMTF), a precision engineering unit of State Engineering Corporation (SEC), was established with the technical collaboration of Oerlikon Buhrle and Company of Switzerland in 1968. It started its production in 1970. The aim was to lay a base for indigenous manufacture of machine tools and other precision engineering products and through this activity, to support the development of industrial sector. PMTF has four distinct product lines i.e. machine tools, automotive transmissions, die cast parts and armaments.
On June 30, 2015 PMTF has total workforce of 1014 which includes 579 regular employees.
PMTF has a variety of facilities production facilities like forging, machining (turning, milling, gear cutting, gear grinding, broaching, splsne rolling, boring etc), pressure die casting, heat treatment, surface treatment, material testing, product designing, tooling designing, tool room, sheet metal and welding shop, CNC shop, machine rebuild shop and power station and a metrology laboratory.
They said PMTF possesses relatively modern facilities, machining systems and procedures, It is also an integrated plant with potential and facilities to train and groom workers, supervisors and engineers. Over a period of about four decades, PMTF has developed enough capability to enter into high-tech areas to produce wide variety of engineering items/products to meet market demand, at competitive prices and according to international quality standards.
They informed that besides catering for the country's defence and engineering sector, PMTF has earned billion of rupees by exporting arms to different countries like Sri Lanka and Malaysia.
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