On Monday, the government announced to sell 1,300 acres of Pakistan Steel Mills (PSM) land in order to handle the sudden losses by the public company.
According to Hammad Azhar Federal Minister for Industries and Production, PSM has 19,000 acres of land, and the 1,300 acres in sales concern belong to the PSM plant area.
As per the reports, Azhar also proclaimed that the PSM staff needs to be cut down, and Rs.10 billion will be paid to the laid-off employees. Each worker will obtain Rs.2.3 million.
He further explained that in the case of retaining all the employees, several hundred billion rupees would be required to keep the company floating. Likewise, he informed that the losses experienced by the PSM have surpassed the annual defense budget.
Azhar added that so far, the Government have paid Rs.92 billion for a bailout. Moreover, the monthly salary of a closed mill is Rs.750 million.
He recapped his previous statement that governments make the situation worse when they try to manage corporations. Speaking about the change of the PSM ownership, he expounded that the management control of the company will remain with the investors, who will bring new technology and qualified personnel to run the mill.
Azhar accused the PPP government for making appointments and postings against the rules. He offered the Sindh government to take part in the bidding and commented, if Sindh government bids right, it can take the steel mill.
On the other hand, the Privatization Commission will articulate the bidding structure and layout the details of the obligations of the company. The minister added that all procedures, comprising land leases, will be carried out as per the rules of law.
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