Cabinet Division has approached the federal government to de-list Pakistan Printing Corporation (PCP) from privatisation program and Rs 1.3 billion package for Compulsory Separation Scheme (CSS), official sources told Business Recorder. PCP was established in January 1969, as a self-financing entity to cater to the printing needs of government departments.
The sources said previously, government organisations assigned maximum printing work to PCP because work could only be contracted to private printers after obtaining a NoC from the PCP. However, with the introduction of the new system of financial control and budgeting in 2000, PCP suffered losses due to drastic reduction in public sector printing orders. Further, increase in salaries, cost of materials, fuel, electricity and other inputs badly affected the financial position of PCP.
"PCP is running into huge losses and relies on government loans to pay the salaries to staff. Finance Division has provided a loan of Rs.25 million for payment of salaries against the request of Rs.180 million which was needed for payment up to June 2011," the sources added.
Secretary Cabinet, Nargis Sethi argues that present workforce, existing old machinery and reduction in quantum of printing work, makes it impossible to run PCP on viable commercial basis. Cabinet Division further stated that PCP requires immediate restructuring. The Board of Directors of PCP in its meeting on December 30, 2010 decided to offer CSS instead of Voluntary Separation Scheme (VSS) which had more financial liability.
Presently, PCP has a workforce of 830 out of which 30 will retire by December 31, 2011. The remaining 400 employees will be offered CSS with four salaries for each remaining year of service, besides the normal retiring benefits. With the remaining 400 employees, PCP shall be in a position to function viably. The estimated requirement of PCP for restructuring and implementing CSS to 400 employees is as follows: CP fund, Rs.680.000 million; CSS+ normal retirement dues, Rs.225.783 million; purchase of machinery, Rs.100.000 million; working capital, Rs.200.000 million; arrears payable to EOBI, Rs.34.982 million; dues payable to retired employees, Rs.25.000 million and others (CDA, KWSB charges payment to suppliers), Rs.60.000 million
Cabinet Division has recommended to the government that due to its negative worth determined by the Privatisation Commission, PCP may be de-listed from the Privatisation Programme, as per prior approval of the Prime Minister besides approval of bail-out package/ one time grant of Rs.1325.765 million may be sanctioned for restructuring and implementation of CSS in PCP.
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