‘Steel Mills suffers Rs20 bn loss annually’

ISLAMABAD: The Ministry of Industries and Production Monday told the sub-committee of the Public Accounts Committee (PAC) that Pakistan Steel Mills (PSM) was suffering a loss of Rs120 billion for the last six years and on yearly basis it was suffering a loss of Rs20 billion to Rs22 billion.
The sub-committee of PAC met here Monday with its Chairman Sardar Ashiq Hussain Gopang in the chair. In the meeting audit paras relating to Ministry of Industries and Production for the financial year 2009-10 was examined.
It was also informed to the sub-committee of PAC that the government has injected Rs8.5 billion in Pakistan Steel Mills to tackle the losses but Rs9 billion has been gone into salaries of the employees of the Pakistan Steel.
The officials of the Pakistan Steel Mills told the sub-committee of PAC that the financial position of the PSM will start improving from April this year and its production capacity would be enhanced to 70 percent. The officials hoped with the increase in the production capacity the corporation would start earning profit.
The Pakistan Steel Mills management told the committee that the management of the Pakistan Steel Mills was completely following the directions of the government to control the loss.
Chairman sub-committee of PAC Sardar Ashiq Gopang directed the management of Pakistan Steels to follow the financial discipline for running the affairs of the corporation.
The Sub-committee of PAC defers seven audit paras regarding the Pakistan Steel Mills as the National Accountability Bureau was conducting the inquiries.
The audit officials presented a case before the sub-committee of PAC regarding non-confiscation of security of Rs20.39 million.
The sub-committee of PAC directed to enhance the security deposit from Rs300 per metric tons to 105 percent.