Each PSM employee will be paid over Rs2.3 million
Federal Minister for Industries and Production Hammad Azhar said that the government would sell 1300 acres of Pakistan Steel Mills (PSM) land in an effort to run the loss-making public sector enterprise.
The PSM owns a total of 19,000 acres of land. The land being leased is the mills plant area, he said.
The minister said that each PSM employee will be paid over Rs2.3 million. If the employees are not laid off then the government would have to pay several hundred billion just to keep the PSM afloat, Azhar said. About Rs10 billion will be paid to the laid off employees.
“Governments have paid Rs92 billion for bailout so far,” said Azhar. “The monthly salary of a closed mill is Rs750 million.”
Azhar said that the losses of the PSE have exceeded the defense budget.
When government tries to manage business entities, it makes the situation worse, the minister said, adding that the management control of the steel mill will remain with the investor. The private investor will run the mill with new technology and the right people, he said.
Azhar said that during the PPP regime, appointments and permanencies were made against the rules.
“The Sindh government should participate in the bidding and if it bids right, it can take the steel mill,” Azhar said. He added that the privatization commission will formulate a structure and inform about the liabilities of the steel mill. All matters, including land leases, will be in accordance with the law.