The national kitty is facing financial losses of Rs 20 billion per annum due to incompetence and poor performance of 38 attached departments of the Ministry of Industries and Production (MoIP). This was revealed by the senior officials of the Ministry of Industries and Production while briefing in a meeting of subcommittee of the Public Accounts Committee (PAC) which held here under the chairpersonship of Senator Sherry Rehman. The meeting was held to discuss and review audit objections of the Ministry of Industries and Production for the year 2015-16.
The officials said if the managements of Pakistan Steel Mills (PSM) and Utility Stores Corporation of Pakistan (USCP) start properly operating the two entities, sufficient revenue will be generated to bear the losses of other attached entities of the Ministry of Production.
The officials further stated that PSM and USCP were facing serious nature of liquidity problem but now the government has decided to operate both the organisations on public-private basis to avoid financial losses and make them profitable.
Federal Secretary Ministry of Industries and Production, Amir Ashraf while briefing the panel on the subject of increase in their products' prices on the plea of depreciation of Pakistani rupee against dollar by some of the industries, said these industries were facing serious problems; therefore, increase in prices was inevitable.
The committee convener said apparently there was no vision or policy of the government, especially the Ministry of Industries and Production, to put the country on the path of industrial growth as every action is bringing the country towards de-industrialization, which is a matter of serious concern.
The panel observed that many of the state entities have become white elephants as they are not performing but employees are drawing salaries and pensions for doing nothing, adding that this practice must come to an end.
The panel said the government must put an end to protectionism policy as modern era was the era of open competition and only those firms are growing which are facing the present challenges of industrialisation. The panel also expressed serious concern over the shifting of Pakistani industry to Vietnam, Sri Lanka, Bangladesh and other countries have better facilities for investors.
The panel said that two years ago auto industry of Pakistan wanted to operate 24/7 but that day the industry is facing a serious challenging situation of the survival and only operates 15 days a month.
The convener also expressed serious annoyance over the officials of the Auditor General Pakistan and Ministry of Industries for not attending the meeting fully prepared and bringing majority of the unsettled paras in the departmental accounts committee (DAC). Sherry said the PAC is not to forward unsettled paras to DAC but to discuss and review audit paras thoroughly reviewed at DAC level, adding that the ministry officials must hold regular DAC meetings and should have close collaboration with the audit officials.
The panel also expressed serious anger over non-appointment of regular chief operating officers (COO) of the Export Processing Zone Authority (EPZA) and asked the secretary why attached departments of his ministry are not functioning properly. The secretary said that he has started reforming and restructuring the attached departments.
The panel directed the concerned officials to probe the matter of massive reduction in the profit of National Industrial Development Park within 10 days with fixing responsibility and provide the details to the committee.