PSM to be privatised in three months: National Assembly panel told

RECORDER REPORT

ISLAMABAD: A parliamentary panel was informed on Tuesday that Pakistan Steel Mills Corporation (PSM) would be privatised in three months. Chief Executive Officer (CEO) PSM informed the committee that the profit of PSM was Rs 3 billion in 2008, but it turned into loss of Rs 26 billion in 2009. Member Committee Arif Alvi asked why the mills went in loss in one single year.

Rasheed Godil remarked that a profitable entity was now a bankrupt unit. Dr Azra Fazal Pechuho chaired the meeting. The committee reviewed the audit reports of the ministry of industries and production for year 2009-10. Responding to the CEO's claim that the PSM's land was estimated at Rs 7 million per acre, Godil said that the management was trying to dispose of land at a throwaway price and he (Godil) would be ready to give Rs 10 million per acre of PSM land.

Alvi said that it was not enough that the PSM stood closed and now its land was being sold at a throwaway price. The committee was informed that the size of land was 19,000 acres. The PSM land measuring 50 acres was rented out to Sui Gas Company on a 60-year lease against Rs 9 million per acre. Another land measuring 930 acres was leased out to National Industrial Park and the rent amount was receivable. The CEO said that the payment of salaries of PSM were linked to if National Industrial Park retires its receivables to them, added that the land was given to the park as per a decision of the ECC in 2002.

The committee directed to recover the receivables from the National Industrial Park. The committee also sought the details of usage of PSM land. The management of Pakistan Tool Factory told the committee members that it has been turned into a profitable entity, which earned a profit of Rs 3 million in first quarter of the current financial year. The management claimed that 24 per cent losses have been reduced, 54 per cent sale has been increased and Rs 1.6 billion worth of orders are in pipeline.

The committee observed that the opposition parties could push the government for delisting the Tool Factory from the privatisation list if it turns into a profitable entity. The management of Tool Factory further disclosed that a procurement order from special security force of China-Pakistan Economic Corridor (CPEC) has been received. "We manufacture 120 small weapons and working on purchase orders for 56 weapons," they said. The law enforcement agencies like FC and Rangers were supplied with the weapons, they maintained.