Theft Cases in PSM cause Rs 18 million loss

By Newztodays Team

Pakistan Steel Mills (PSM) has faced theft worth Rs 18 million that has impacted its operational capability.

The Senate Standing Committee on Industry and Production was informed on Friday that thefts were on the rise at Pakistan Steel Mills (PSM), significantly impacting the operational capability of PSM and increasing its financial burden.

The committee discussed the challenges facing Pakistan Steel Mill, where Arif Shaikh, acting Chief Financial Officer (CFO) of PSM, acknowledged an alarming surge in theft incidents, resulting in substantial financial losses to the state-owned entity.PSMC shareholders question debt settlement deal with SSGC against land

Officials reported that since 2021, thefts have escalated, causing a loss of around Rs18 million, with recoveries amounting to Rs4.9 million made.

Mr. Shaikh added that the theft of machinery and assets has significantly impacted the operational capabilities and financial stability of PSM.

He also mentioned that PSM employees received a 25 percent increase in temporary relief allowance, effective since September 2023, as announced by the government for all public sector employees.

Chairperson of the Committee, Senator Khalida Ateeb, inquired about the relationship between the decreased workforce and the rise in theft incidents.

The acting CFO of Steel Mill attributed the increase in thefts to the decreased workforce, stating that the drastic reduction in employees from over 9,000 has created a deserted environment in PSM, increasing security vulnerabilities.

The officials informed that PSM now has only 3,000 employees, with 589 staff in the security department, and the estimated yearly loss due to thefts is around Rs12.8 million.

Senator Khalida Ateeb expressed dismay at the Ministry of Industries and Production for not filling the vacancy of CEO of PSM for the past four months.

The committee decided to hold a separate meeting with the caretaker Minister for Industry and Production and the Secretary of Industries in this regard.

The Chairperson of the committee adjourned Pakistan Steel Mill-related matters for two weeks due to the absence of the minister and the secretary from the meeting.

The Senate committee also decided that the next meeting on PSM will include a comprehensive briefing on theft prevention strategies, the future outlook for the mill, safeguarding employee welfare, protecting assets, and immediate plans for the revival of production. PSM was shut down in 2015 under the PML-N led government, amid rising financial burdens and huge outstanding dues to the power sector.

In January 2020, the PTI-led government decided to place PSM under the Privatisation Commission to offload it from state ownership, and in October of this year, the federal cabinet decided to remove the steel mills from the government’s privatization list, after failing to attract any buyer for the industrial giant.

Currently, out of 26 entities offered for privatization, only three, including the Heavy Electrical Complex (HEC), Sindh Engineering Limited (SEL), and Pakistan Engineering Company (PECO), belong to the industrial sector.

The meeting also addressed key financial matters and discussed outstanding and overdue payments to be made by National Fertilizers Marketing Limited and Utility Stores Corporation of Pakistan to the Trading Corporation of Pakistan. The committee recommended relieving excess employees to alleviate the burden on the institution, aligning with the institution’s operational requirements.

In line with the committee’s deliberations, proactive measures are being considered to ensure timely payments and prudent human resource management within these key institutions, focusing on their sustained growth and stability.