PAKISTAN Steel Mills is the story of the wonder of corruption, the pillar of Pakistan’s economy, which was supposed to reduce the national debt and economic recovery. Every effort has been deliberately availed to destroy the national profit-making institution. Corruption, political recruitment, illegal promotions, appointments to big positions, and fraud explain the story of such an unbelievable corruption. The closure of which was also costing 30 billion rupees per year. 47 lakh Cooper stolen and 1 crore 28 lakh scrap theft in the last two years. The secrets of the manipulations of its officers have been exposed as well.
The post of COA is also vacant since June 2023. However, it is very said that no one has stopped the anti-national hidden hands who put the last nail in the coffin of the steel mills. Was the game played for its land worth trillions? Each time its privatization was postponed, according to the Privatization Commission, no buyer could be found for Pakistan Steel Mills. While the caretaker government called it a dead horse, it was removed from the privatization list. Who will buy it? It can be restored even without doing it? and who will take actions against those involved in billions of corruption regarding it.
Steel mills took a loan of 110 billion rupees from the government of Pakistan, after which they pay the government 18 billion rupees annually as interest, annual salary charges of 2.5 billion rupees, utility charges of five billion rupees annually. While $584 million is required to rehabilitate steel mills, more than $580 million is required to produce 1.1 million tons annually. In 2015, it was shut down; citing non-payment of Sui gas bills. The shutdown resulted in a loss of 18 billion dollars in foreign exchange in terms of exports. Despite the closure, the tax profit of around 7 billion 45 crore rupees was earned in 2022. Pakistan Steel’s debt is 229 billion while the value of its current assets is between 20 billion to 34 billion. Steel Mills owes Sui Southern Gas Rs 22 billion. It borrowed Rs 36.42 billion from the National Bank, which was never repaid.
On March 20, 2023, Sui Southern Gas Corporation bid to give 1400 acres to us for only 43 billion. Pakistan Steel total land is 19 thousand 13 acres. Similarly, it has Four and a half thousand houses of Steel Town and one house is worth more than 1 crore. Gulshan Hadid Phase I, II, III, IV, Arabian Country Club Downstream Projects Industries were built on the land of Steel Mills; that rent from the grade stations. They take this rent from Labor Colony and K Electric which has never been mentioned in any forum. Apart from this, Pakistan Steel’s assets include iron ore mines on 10,061 acres, limestone mines on 844 acres in Jhumpar, and mines on 9,800 acres in Makli. The question is why these mines were kept secret? All these properties were built with public funds which is about 17.56 billion rupees, the cost of its plants, land and other assets is a complete separate tale.
In 2007, the steel mills had earned a profit of 2.37 billion rupees, in 2008, the account of the steel mills was 25 billion rupees, but it continued to be shown as a loss. Before PP, the steel mills had an estimated raw material of 10 billion-12 billion. There was cash and finished goods worth 8 billion. But no one knows where all these goods and money went? Two FIA officers were replaced by the then Interior Minister Rahman Malik on investigation of corruption. Similarly, dark era started with the appointment of Usman farooqi as a Chairman.
Usman Farooqui is the brother of former President Asif Zardari’s close associate Salman Farooqui and the corruption cases against him in the steel mills have also been proven. During the Musharraf era, the reins of the steel mills were in the hands of First Lieutenant General Retired Abdul Qayyum and Major General Retired Muhammad Javed. In 2006, a Rs 250 billion steel mill was sold to Arif Habib Group and Saudi investors for around Rs 21 billion. 19 thousand 13 acres of land with a market value of Rs 250 billion and new manufactured products worth Rs 11 billion were in inventory. At that time, it was earning 4 billion rupees in annual profit.
The then Chief Justice Iftikhar Muhammad Chaudhry cancelled the privatization of the steel mills, but no plan was made to revive the institution. In 2011, the total assets of Pakistan Steel Mills were estimated at 1200 billion rupees, while there were also 38 billion rupees in the form of provident fund and gratuity of the institution, but they were suddenly disappeared. There was an attempt to privatize in Nawaz Sharif’s 1998 era, but Asad Umar went to court. In 2020, attempts were made to privatize once again. The Supreme Court declared the privatization null and void. Pakistan Steel Mill was decided to be leased for 30 years. Tehreek-e-Insaf made a lot of promises for the rehabilitation of Pakistan Steel Mills, but a large number of employees were laid off during their tenure.
The production of mother of industries PSM started with 1.1 lakh tons of steel and in just five years it went up to 33 lakh tons. From 1981 to 2007, this profit-making institution paid 114 billion rupees to the federal government in the form of taxes in addition to returning the loan of 25 billion rupees taken from domestic banks. It is important that the corrupt elements, including the bureaucrats who are constantly pretending losses, should be identified and brought before the people’s court. Forensic audit of assets of steel mills should be made to know the ultimate truth.
—The writer is contributing columnist.
Who is responsible for the destruction of PSMs?
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08.05.2024
PAKISTAN Steel Mills is the story of the wonder of corruption, the pillar of Pakistan’s economy, which was supposed to reduce the national debt and economic recovery. Every effort has been deliberately availed to destroy the national profit-making institution. Corruption, political recruitment, illegal promotions, appointments to big positions, and fraud explain the story of such an unbelievable corruption. The closure of which was also costing 30 billion rupees per year. 47 lakh Cooper stolen and 1 crore 28 lakh scrap theft in the last two years. The secrets of the manipulations of its officers have been exposed as well.
The post of COA is also vacant since June 2023. However, it is very said that no one has stopped the anti-national hidden hands who put the last nail in the coffin of the steel mills. Was the game played for its land worth trillions? Each time its privatization was postponed, according to the Privatization Commission, no buyer could be found for Pakistan Steel Mills. While the caretaker government called it a dead horse, it was removed from the privatization list. Who will buy it? It can be restored even without doing it? and who will take actions against those involved in billions of corruption regarding it.
Steel mills took a loan of 110 billion rupees from the government of Pakistan, after which they pay the government 18 billion rupees annually as interest,........
© Pakistan Observer
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