Steel mills needs immediate release of bail-out pacakage: Ch. Anwar Ali Cheema, federal minister for production
Islamabad: Federal Minister, Ch. Anwar Ali Cheema has stated that PSM is in dire straits and immediate release of bail-out package has become mandatory. “PSM is the backbone of our national economy. However, non-availability of funds for meeting out its running cost would jeopardize its operational plan”, the Minister remarked while supervising the Board meeting of PSM here today in Islamabad.
In a briefing, the PSM management apprised the Minister of the financial status of the Mills. The Acting CEO PSM, Mr. Wasif Mehmood informed the participants that the present capacity of the mills was still below 20% with heavy losses of Rs.50 million per day i.e. Rs.1.5 billion per month.
The payment of salaries to the labourers/employees are being delayed, the officers are agitating for increase in their salaries as allowed from time to time by the government and CBA is pressing hard for acceptance of charter of demands. On the other hand, the financial position of the Mills hardly facilitates the purchase of much-needed raw material. Under these circumstances, the operational condition of PSM has started sliding down by each passing day due to inconsistent and unreliable supply chain of raw material.
The agenda of the meeting included the validation of the appointment of five new Board Members, reconstitution of Board Committees i.e. Board Human Resources Committee, Purchase Committee and the Audit and Finance Committee, and other items relating to administration/operation of the Mills.
The Board requested the Minister to take up the issues regarding release of bail-out package and the appointment of a full-fledged CEO of PSM, at the highest level of government.
The Minister told the PSM management that in his very recent talk to the PM, he had conveyed to PM the urgent needs of the Mills. “PM has assured to provide all possible assistance to PSM to bring it out of crisis.” The Minister informed.
In the end, the Minister thanked all the Directors who participated in the meeting and provided the Board with their valuable input. The Minister emphasized upon all the Directors to play their constructive role in strengthening and improving the performance of the Mills.
The Meeting was also attended by the Parliamentary Secretary Production, Dr. Mehreen Razzaq Bhutto, Mr. Iqbal Muhammad Ali, Chairman Standing Committee Production and the Secretary Production, Gul Muhammad Rind.
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