Additional Secretary Incharge, MoI&P Mian Asad Haya-ud-Din informed the committee that PSM's total liabilities stood at Rs 188 billion of which Rs 50 billion is of banks' consortium led by National Bank of Pakistan, Rs 50 billion of GoP on account of salaries, Rs 43 billion of SSGC and Rs 40 billion of employees, etc.
He said, the government's top priority is to pay off liabilities of employees through sale proceeds of PSM land sold to NIP in 2007. The government can raise Rs 12 billion from sale of 9500 acres of PSM land of Rs 10 billion would be paid off to the employees. Previously, the valuation of land was Rs 1.5 million per acre which has now risen to Rs 2 million per acre.
PSM management has been directed to sell the available scrap valued at Rs 1.5 billion. This amount would be used for operational expenses of the mills. He was of the view that the number of PSM employees should be reduced but the case is different. Previously, the government was paying salaries of Rs 380 million per month which has now increased to Rs 390 million.
In response to a question if the government is considering reviving Pakistan Steel Mills (PSM) , Additional Secretary Incharge did not reply directly, saying that it's a time of mini-steel mills and integrated units, adding that massive steel mills are closing down. According to him, massive financing is required to operationalise PSM.
Mian Asad Haya-ud-din argued that steel-making is not the business of government. He said Pakistan Steel Mills was never a profitable entity. He was of the view that PSM's technology was of the 1960s. He said that PSM has 3500 employees.
However, Syed Imran Ahmad Shah, Chairman National Standing Committee on Privatisation, cited Daniyal Aziz, Minister for Privatisation, as saying that the government is considering establishing a mini-steel mill in the vicinity of PSM to support PSM.
Chairman Standing Committee said that operational matters of PSM fall in the jurisdiction of Standing Committee on Industries and Production. However, another member stated that with the collapse of PSM, SSGC and banks are also facing the brunt. Chairman Standing Committee argued that SSGC is operating at 14 per cent UFG and burning billions of rupees per annum.
The issue of scrap theft also came under discussion. The acting CEO PSM, who wants a full-time CEO, said that action is being taken on such incidents. The acting CEO has reduced operational cost of PSM. He is also said to have saved a big amount of money in Trading Corporation of Pakistan (TCP) operations.
The Committee directed the Ministry of Industries & Production to submit the report within 3 months regarding investigation of Management/Defalcation in Pakistan Steel Mills (PSM), Karachi by National Accountability Bureau (NAB) to fix the responsibility of losses.
Utility Stores Corporation (USC)
The Standing Committee discussed the operational and financial matters of USC and directed the Managing Director Mathar Niaz Rana to submit a plan on how to run the organisation with available manpower and the number of stores.
The Additional Secretary Incharge MoI&P informed the committee that two General Managers of USC have "hijacked" the entire organisation. The office bearers of USC's All Pakistan Workers Union (CBA) accused the management of removing contractual employees instead of giving them confirmation letters.
They also hurled accusations against Board of Directors (BoD) for hiring consultants from private sector at high packages and charging Rs 50,000 fee for one meeting. The office bearers who were sitting behind the General Manager Human Resource, accused Private Secretary to Minister for Industries and Production, Maula Bux Chandio of pressurizing USC management on transfers and postings.
The committee was informed that major lacunae in USC operations are as follow: (i) weak internal controls; (ii) inventory releases and value return with no break up of vendor or items sold; (iii) possibility of fraud and payment for items not sold or damaged; (iv) running 5,327 stores with model of 20 stores developed in the 70s and; (v) a daily loss of around Rs 16 million per day.
Additional Secretary Incharge, informed the committee that he is holding a meeting with head of Canteen Stores Department (CSD) along with the incumbent MD USC and two of his predecessors aimed at taking his advice to run USC as a profitable organisation. CSD is serving armed forces personnel while creating a commercially viable retail outlet.
The Committee further directed the Managing Director Utility Store Corporation USC to submit the report regarding the 3649 daily wage employees update and subsidy requirement for the USC.
The Committee also suggested to include in the PSDP 2018-19 the issue of PC-1 for expansion of Agro Food Processing Company by Managing Director, Small and Medium Enterprises Development Authority (SMEDA).
The Committee also suggested to hold or organise a meeting by the representatives of All Pakistan Marble Industries Association (APMIA), Pakistan Machine Tools Factory (PMTF), and State Bank of Pakistan (SBP) regarding financial banking rules.
The committee also discussed corruption in National Fertilizer Marketing Limited and actions taken against the responsible officials. The issues related to urea availability in the country also came under discussion. The committee recommended that the government should allow NFML to import urea to counter private sector which is charging higher prices from farmers. The Committee directed the Managing Director of National Fertilizer Marketing Limited (NFML) to provide the list of Managing Directors for the period of last 10 years including the details of price control of urea.
Engineering Development Board (EDB)
Additional Secretary Incharge MoI&P informed the committee that he is finalizing a summary for Prime Minister Shahid Khaqan Abbasi with full dedication for review of the CCoE decision. The CCoE had decided last year that EDB should be dissolved due to rampant corruption. Minister for Industries, however, is in agreement with the Prime Minister that EDB should be dissolved. Additional Secretary Incharge was of the view that there is issue of process in the EDB and not the structure. He said EDB is facing the issue of capability and capacity.
He disclosed that the EDB Board will be revamped and the position of CEO will be advertised.
"We will try to revive EDB properly , adding that there is no industrial and fertilizer policy in the country," he continued. Besides others, the meeting was attended Sardar Mansab Ali Dogar, MNA Dr Shezra Mansab Ali Khan Kharal, MNA Syed Imran Ahmad Shah, MNA Sardar Kamal Khan Chang, MNA Chaudhry Riaz-ul-Haq, MNA Rana Muhammad Qasim Noon, MNA Abdul Hakeem Baloch, MNA Sajida Begum, MNA Mehboob Alam and MNA Maulana Muhammad Gohar Shah.