2. Some basic information about Pak Steel Mill-
Industry : Steel and Iron Products
Founded : 30th Dec 1973
Founder : Zulfiqar Ali Bhutto
C.E.O : Major General (Retd) Zaheer Ahmed
Employees : 16,200
Revenue : 4.3 Billion (2011 to 2012)
Net Income : 5.7 Billion (2011 to 2012)
Total Assets : 72.5 Billion – 125.5 Billion in 2012
3. Pakistan steel mill need huge money injection to stay
Afloat:
At present the mill is running at only 3% of production
capacity.
Pakistan steel mill the biggest and only integrated steel
mill in pakistan, is going through its worst financial and
production crisis in its history of three decades.
The mill has not only accumulated huge losses,
especially in the last 5 years, it is also running at an
embarrassingly low production capacity of just 3%, the
lowest capacity utilization in 31 years.
4. PSM, which is the largest industrial complex
in the country has a huge workeforce of over
16,200 employees, many of the employee
have been appointed on political grounds, is
not the biggest problem, its something else.
At present, the biggest concern for the
national giant immediate injection of a huge
amount of money, with some experts putting
it at Rs, 20 billion, to purchase raw material
to be able to stand on its feet again.
5. In September of 2013, the PML-N
government decided the bail PSM out with a
Rs, 2.9 Billion package,Thoguh most of the
money has been provided, it has only gone to
meet salary expense of employee & to
purchase some basic raw material.
The bailout package is too small compared to
the 4 packages that the previous government
approved in its tenure, The last
administration injected over 40 billion in four
phases, but since the money was provided in
phases, it did not bring any positive change
in the financial health of PSM.
6. Pakistan Steel Mill is still
manageable, said HAQ NAWAZ
AKHTAR, former PSM chairman,
also said the mill should run at
all cost, whether the government
runs it under a private
management or its carefully
privatized at certain terms.
7. PSM installed capacity of the mill is
1.1 million tons and its capable of
expanding production to 3 million
tons, Because of poor planning,
mismanagement and corruption,
successive government have never
been able to run the mill even its
installed capacity.
8. PSM Top management said:
The PSM running at just 3% capacity, the mill
is booking losses of at least Rs, 2 billion per
month. ‘‘it can reach break even at 70-75%
capacity and to make profit, it needs to run at
80-85% which look is impossible unless it
buys raw material in big quantities’’
9. Said one of the top official of PSM,
I think corruption is one of the few sins in
which some heads of PSM were involved,
some of these have faced trials in the past’’
One of the biggest reasons why PSM has
gradually weakened is that the organization
face a dearth people who could replace the
top management once they retrire, said
former director Arshad Ali Rizvi.
10. Conclusion Points:
First we give the basic Funds to run PSM.
Remove all illiterate and corrupt
management & hire the new one who have
knowledge about PSM, make sure all
employee will hire with the base of merit
instead of political ground or political
pressures.
Source : The Express Tribune, November 11th-2013
