PSM’s trade union holds govt responsible for crisis

KARACHI: The trade union of the Pakistan Steel Mills (PSM) held the federal government responsible for the zero production caused by gas crisis at the mills. “Pakistan Steel, which is a national institution and having strategic importance, is being deliberately destroyed through an organised conspiracy,” said Shamshad Qureshi, chairman of Pakistan Steel Peoples Workers Union (CBA). The actual reason for decrease in gas supply to Pakistan Steel mills is not the long pending utility bills to Sui Southern Gas Company (SSGC). “Rather, this is a planed plot of the incumbent government to shut and sell the mills, which were gradually recovering from losses and performing well before the manmade gas crisis since June 10,” Qureshi said. “The pending dues of…[K-Electric] to SSGC stand at Rs55 billion as compared to Rs35 billion dues of PSM. However, the gas firm is not disconnecting its supply connection to the power utility.” He alleged that the Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and Chairman Board of Investment and SSGCMiftah Ismail designed the crisis. The gas crisis caused a cumulative loss of Rs3.5 billion to the steel mill during the last 55 days. PSM is incurring Rs70 million/day loss since June 10. CBA chairman said the Economic Coordination Committee (ECC) of the cabinet settled the pending bills issue in 2012 and 2014. However, SSGC is not complying with the rulings, he added. Qureshi quoted the ECC’s ruling issued on April 25, 2014 as stating: “Billing to SSGC be frozen for two years, while dues payment be rescheduled over a period of 10 years afterwards. Moreover, SSGC surcharge be waived off.” PSM owes Rs35 billion to SSGC as in July 2015. This included Rs18 billion as an actual payment and Rs17 billion as late payment surcharge. “As per law, only consumers can import steel. The law is being violated as traders are importing the cheaper steel and minting money. This is causing heavy losses to PSM,” he said. He said PSM has around 16,000 employees. Authorities should pay attention to the crises and device strategy for its revival and survival of employees and their families, he added. He said the solution lies in paying Rs15-20 billion to PSM in one-go instead of paying such amounts in various installments under the bailout packages or bank loan. “When they [government] can pay huge Rs480 billion to clear the circular debt, and another Rs78 billion to Pakistan Railways then why Pakistan Steel is not being paid a lesser amount of Rs15-20 billion,” he questioned. He said the full bailout payment will help develop a cycle of buying raw materials and producing finished goods and paying utility bills and salaries to employees.