A four-member official delegation led by CEO Major-General Muhammad Javed (retired) visited Iran on December 23-25 and held discussions with Iranian companies ie M/s Shadabe Yazd Industrial Company M/s ICIOC, M/s Imidro, M/s Ehya Sepahan Mining and Industries Complex Company and M/s Asre Poya Industry. However, the current CEO who faced a difficult situation in Iran reportedly, due to his predecessor''s poor negotiating skills, is optimistic about a barter deal with Iran.
"Our discussions with the Iranian companies and other officials were very fruitful and I hope the deal will be struck very soon," said CEO PSM. Other members of official delegation were Engineer Jabbar Memon who is also chairman of price committee, and Syed Nayyar Hussain Haidar, CEO PSM, Major General Muhammad Javed (retired) and General Manager Bulk Material Department Shamsi Hasan.
Talking to Business Recorder , the CEO of PSM said that he is suggesting to the government that an inter-ministerial committee should be formed to finalise the payment and price mechanism of barter deal besides nomination of a focal person for this purpose. Javed also met Deputy Iranian ambassador to Islamabad on Wednesday and discussed with him the outcome of his deliberations with the Iranian companies and officials during his visit to Iran.
Sources said the CEO of PSM sought the help of Iranian ambassador for finalisation of barter trade deal. In reply to a question, CEO said that he has recommended to the government that all the concerned Ministries should be on board prior to finalisation of barter trade deal with Iran.
he Board of Directors of PSM was informed on December 5 this year that for the last 10 days of October 2012, the Capacity Utilisation (CAPU) had declined to 8 per cent as there was no coal after five months and twenty days. PSM was operating on 12-14 per cent CAPU which was reduced due to non availability of coal.
Sources said the delegation faced tough time at a meeting with the officials of ICIOC for non payment of $15.5 million which according to the PSM is only 10% amount of total payment. PSM maintains that US sanctions against Iran and financial issues faced by PSM were key reasons for the delay in payment to the company. The sources said the tender for 100,000 tons of iron ore was finalised in October 2012 but the supplier failed to fulfil the contractual obligations and consequently the contract had to be cancelled and the earnest money of Rs 4.7 million of the supplier forfeited, which is quite a rare occurrence in PSM.
According to sources deferred payment basis is the only option available with PSM as the efforts to obtain finances from other source by Chief Financial Officer (CFO) have not yet materialised. Moreover, the practice of deferring the payment in case of gratuity and provident fund is not new and the same is being practised since many years.
The sources said Transparency International Pakistan and PSM are also at loggerheads over two contracts with Transparency International Pakistan maintaining that the award of contract is in conflict with PPRA rules and will inflict billions of rupees to the national exchequer. On the other hand PSM argues that it has not violated any rule of PPRA, hence procurement does not attract Rule number 50 which would label it as mis-procurement.