Public Sector Entities (PSEs), which reportedly account for a haemorrhage of Rs 500 billion per year from the national exchequer, are now compelled to pledge their inventories for survival. Pakistan Machine Tool Factory (PMTF) has expressed its willingness to pledge 120 anti-tank weapons, ie, RR-106 as finished inventory, for Rs 500 million, the money required to pay salaries to its employees.
Sources close to Chairman PMTF, Raja Muhammad Abbas told Business Recorder that a presentation has also been given to the Minister for Industries and Production, Ghulam Murtaza Jatoi wherein immediate financial support has been sought. The company has given following options to cope with the situation: (i) sale of spare land to some government organisation; (ii) increase in GoP guarantee; (iii) injection of funds for new projects;(iv) placement of PMTF under Strategic Planning Division (SPD); (v) merger with EPZA; and (vi) privatisation.
PMTF is presently facing a financial crunch due to which Collective Bargaining Agent and staff are agitating which has resulted in loss of industrial output. PMTF has barely escaped disconnection of utilities due to non-payment of bills, and non-availability of inputs has substantially reduced the output, thereby compromising the pensions of the organisation's retired employees. "All the proposed options for immediate financial support for PMTF will take considerable time, therefore we have requested short-term intervention of Minister for Industries and Production for transfer of funds from EPZA or other units of MoI&P to the PMTF," the sources continued.
Most of the units or entities under administrative control, including Pakistan Steel Mills (PSM) are running into massive financial losses due to a variety of factors. The Federal government has finalised a list of 31 PSE's in consultation with the International Monetary Fund (IMF) to be privatised as early as possible.
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