News Report
The government has reappointed Brig (Retd) Shujah Hassan Khurazmi as CEO, Pakistan Steel Mills.
Pakistan Steel mills had been dysfunctional since June 2015.
This led to issues of land grabbing, theft, misuse of resources, rationalization of Human resources of PSM.
Other issues were national and international litigation and fulfillment of various statutory requirements.
These issues cropped up leading to serious consequences for the Government. Meanwhile, the Government of Pakistan also decided to revive PSM through a competitive bidding process.
Earlier, the Cabinet Committee on Privatization (CCoP) had taken the decision in June 2019.
The government had appointed earlier Brig (Retd)Shujah Hassan Khurazmi CEO Pakistan Steel Mills to resolve these issues.
PSM Board of Directors (BoD) had recommended one year contract for CEO Pakistan Steel Mills, which expired on August 19, 2021.
At present, the revival process of PSM was at an advanced stage. SECP had incorporated a new subsidiary M/s Steel Corp (Pvt) Ltd. being a part of the revival plan.
The incumbent CEO Pakistan Steel Mills (PSM) had tried to resolve long outstanding management-related issues.
He was also instrumental in facilitating the ongoing privatization process. PSM Board in its meeting held on July 13, 2021, recommended an extension in his contract period for one more year w.e.f. 20th August 2021.
According to Section 187(1) of the Companies Act, 2017, ensure should not be more than three years from the date of appointment.
The incumbent CEO-PSM had completed his one year of appointment only w.e.f. 20th August 2020 to 19th August 2021.
the Federal Cabinet is competent to approve the appointment of CEOs. Moreover, the CEO, on his expiry of a term should be eligible for re-appointment.
Therefore, the Federal Cabinet can consider the proposal of his regarding re-appointment. Government has powers to reappoint for one more year inline the same package, PSM approved on January 1, 2021.
The appointment should be terminable on one month’s notice from either side. The Industries ministry sought approval of the Federal Cabinet.
The Cabinet considered the summary titled ‘Re-Appointment of Brig （Retd). Shujah Hassan Khurazmi as. Chief. Executive Officer （CEO), Pakistan Steel Mills (PSM)’.