SSGC seeks transfer of PSM’s land to clear dues
Aftab Ahmed
The government is likely to allocate 11 acres of land owned by Pakistan Steel Mills (PSM) to Sui Southern Gas Company (SSGC) to clear its payables.
Sources told Newztodays.com that top management of SSGC had approached the government requesting to allocate 11 lands Pakistan Steel Mills (PSM) owns.
It has requested the government to facilitate the transfer of lands from Pakistan Steel Mills (PSM) on an urgent basis to set off land lease value against payables to SSGC.
SSGC is to receive dues from PSM on account of gas supply to it in the past. During the previous government of PML-N, SSGC had continued supplying gas to PSM. However, it had disconnected supplies on the dispute of payments.
Then the management of PSM had termed it a conspiracy by the PML-N government to default PSM. PSM had achieved production level at 33 per cent and also committed to paying current dues. PSM had also pledged to pay outstanding in instalments along with current bills.
However, the PML-N government had suddenly cut off supplies to SSGC, which resulted in shutting down the Steel Mill since 2015.
During the PML regime, Pakistan and China have started work on the China-Pak Economic Corridor–CPEC. So, it was a big opportunity for Pakistan to use its steel. However, imports increased and other private sector mills utilized this opportunity, and PSM was shut down when it was increasing its production.
Due to this policy, Steel Mills had become a white elephant since 2015 as governments had paid billions of rupees to it on account of salaries to the employees. PTI government had now announced a package of voluntary separation schemes (VSS) for its employees.
In addition to it, the PTI government had worked on different options whether to operate it in joint ventures with foreign companies or privatize it. Currently, the government is working to privatize it to abandon this asset to the private sector.
