KARACHI, Aug 10: Prime Minister Raja Pervez Ashraf announced on Friday that Pakistan Steel Mills (PSM) would not be privatised and that efforts would be made to turn it into a profitable organisation.

Addressing a function at the PSM, the prime minister said that in future no one would call the organisation a ‘white elephant’ because it would serve to strengthen all other industries in the country.

He said the payments to be made under the PSM’s bailout package of Rs14.8 billion would not be delayed.

Mr Ashraf announced a grant of Rs2 billion for the organisation and asked the finance ministry to make the payment before Eidul Fitr.

He said that despite a production of 250,000 tons, the PSM was not making any profit because its expenditure exceeded its income.

Turning to the demands made by PSM employees, he said that despite its limited resources the government would try to provide the facilities sought by workers.

The prime minister said the PPP was not only the country’s largest political party but also a federal party which had roots in the people.

He said his party had rendered great sacrifices for democracy. He was of the opinion that the PPP fully understood the problems faced by the people because its leadership came from the masses.

Mr Ashraf said the PSM was not the only organisation which had become a burden for the economy.

Even when Yousuf Raza Gilani was the prime minister, the PPP-led government had tried to bail out the PSM and had approved a package of Rs15 billion for the purpose, he said.

Mr Ashraf said that an honest and diligent official had been appointed as the PSM’s chief executive.

He expressed the hope that the organisation would soon begin making profits.—APP