ISLAMABAD: The Senate Standing Committee on Industry and Production was informed on Friday that thefts had significantly impacted the operational capability of the Pakistan Steel Mills (PSM) while its financial burden continued to mount.
The committee discussed the challenges being faced by PSM as Acting Chief Financial Officer Arif Shaikh admitted that there was an alarming surge in theft incidents resulting in substantial financial losses to the state-owned entity, which used to be the largest steel producer in Pakistan.
The committee was informed that thefts have escalated since 2021 causing a loss of around Rs18 million, however, recoveries amounting to Rs4.9m have been made.
Mr Shaikh added that the theft of machinery and assets has significantly impacted the operational capabilities as well as the financial stability of the PSM.
Senate panel calls for prevention strategies and a production revival plan
At the same time, Mr Arif said that the existing employees of the PSM have been given 25pc hike in the temporary relief allowance, effective since September, as announced by the government for all public sector employees.
Chairperson of the committee Senator Khalida Ateeb inquired about the relation between decreased workforce and the rise in theft incidents.
The acting CFO attributed the surge in thefts to the decreased workforce, adding that the drastic reduction in employees from over 9,000 has created a deserted environment in the mills giving rise to security vulnerabilities.
The PSM official informed that there were only 3,000 employees with 589 in the security department, and the estimated yearly loss due to thefts was around Rs12.8m.
Ms Ateeb expressed dismay at the Ministry of Industries and Production for not appointing a chief executive officer for the past four months and called a separate meeting with the industry and production minister.
It was decided that the next meeting on PSM would include a comprehensive briefing on theft prevention strategies, safeguarding employee welfare, protecting assets, and the immediate plans for the revival of production.
In January 2020, the PTI-led coalition government decided to place the PSM under the Privatisation Commission, to offload it from the state ownership,
while in October the caretaker cabinet decided to remove the steel mills from the privatisation list after failing to attract any buyer.
Published in Dawn, December 23rd, 2023
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