Pakistan Steel Mills lays off over 5,000 employees in four years

ISLAMABAD: Pakistan Steel Mills (PSM) has terminated 5,282 employees in the past four years as part of its efforts to overcome its financial crisis, according to a report obtained by the Hum Investigation Team (HIT).

The report, which was submitted to a meeting of the Senate Standing Committee on Industries and Production on Thursday, revealed that the employees were laid off in three phases, comprising 1,681 officers and 3,495 workers from various divisions.

Additionally, a total of 397 employees, including contract workers, were disengaged from employment, says the report submitted to a meeting of the Senate Standing Committee on Industries and Production. The meeting, chaired by Senator Khalida Ateeb at the Parliament House, was told that Rs30 billion were spent on the closed PSM, which was delisted from the privatisation list and will be converted into an export promotion zone. The meeting was told that after the de-listing, its revival may take four to six months.

The Industries Division secretary told the committee that no buyers showed interest in purchasing the PSM, which suffered losses of Rs206 billion in the last fiscal year. He said that the revival of the PSM would require an investment of $584 million and take at least four to six months.

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The committee expressed concern over the theft of valuable items worth millions of rupees from the PSM in the last two years. The Ministry of Industries and Production has initiated stock taking at the PSM, with the Pakistan Institute of Management in charge.

The PSM’s Chief Financial Officer informed the committee that the institution had borrowed Rs110 billion from the government and paid Rs18 billion annually in interest. He said that the PSM also paid Rs2.5 billion in salaries and Rs5 billion in utility charges.

The committee was also informed that a copper theft of Rs4.7 million occurred at the PSM in the presence of Rangers personnel. One officer and two employees were found involved and dismissed from their positions.

Senator Fida Muhammad walked out of the session over the absence of federal minister for production and other relevant officials.

The committee raised questions about the accountability of security personnel for the thefts and the number of Rangers deployed at the PSM. The officials disclosed that there were 500 Rangers personnel at the PSM and that thefts had decreased compared to previous years.

The PSM, which is currently closed, consumes gas worth Rs1 billion annually, the committee was told.