Govt Paid Rs. 36 Billion in Salaries to PSM Employees Despite Zero Production

Government & Politics

The Ministry of Industries and Production informed that despite zero production and zero income from the productive activities at the Pakistan Steel Mills (PSM) since its closure, no staff rationalization plan was initiated.

The 14th meeting of the Standing Committee on Industries and Production of the National Assembly was held here today, under the Chairmanship of Member National Assembly, (MNA) Sajid Hussain Turi.

The Committee approved the minutes of the previous meeting and decided that the report on the implementation status of the previous recommendations of the Committee would be discussed in an exclusive meeting.

Ministry of Industries and Production Joint Secretary briefed the Committee about sacked employees and retrenchment plan of Pakistan Steel Mills (PSM). He informed that despite zero production and zero income from productive activities at the Mill, since its closure, no staff rationalization plan was initiated.

The government of Pakistan has been releasing net monthly salary to PSM employees that amounts to approximately Rs. 36 billion from June 2013. He added that the incumbent government earmarked Rs. 4 billion for salaries of present employees for the FY2020-21.

He informed that paying salaries to employees, especially during “No Work” for more than five years, is well beyond the established norm and has impacted the national exchequer heavily over the years.

The Committee members believed that PSM’s land (residential plots) allocated for housing society, i.e., Gulshan-e-Ehded, may be allotted to the employees of PSM as retirement compensation.

Joint Secretary Ministry of Industries and Production briefed the Committee that the decision of retrenchment has been taken considering all laws, rules, and regulations of the land without any prejudice to any individual or any one group. In the first place, out of the total PSM’s workforce, 4,544 employees have been retrenched by PSM management by releasing Rs. 11.012 billion.

After deliberations, the Committee unanimously decided that another meeting in this respect in the presence of the Privatization Commission and all stakeholders will be called.

Director-General, Pakistan Hunting and Sports Arms Development (PHSADC) briefed the Committee about the said organization. He informed that PHSADC is a company registered under Section 42 of Companies Act, 2017 as a subsidiary of Pakistan Industrial Development Corporation (PIDC) under the administrative control of Industries and Production Division, Government of Pakistan, works for the promotion of Gunsmith sector in the country.

Pakistan Industrial Development Corporation (PIDC) is the sole shareholder of the company and has financed it with an amount of Rs. 356.65 million.

He also highlighted the mandate of PHSADC, Establishment of Facility and Training Center, development in production, the achievement of International Standards/Certification, Promotion of Local Manufactured Products Exhibition, Export orders, and Cluster of Development, including Future Projects and Objectives of the company.

The Committee recommended that the Ministry of Defence and Production may be invited to the meeting of the Committee to discuss the issues of NOC being faced to PHSADC.

The meeting was attended by MNAs, Nasir Khan Musa Zai, Muhammad Abdul Ghafar Watto, Syed Mobeen Ahmed, Muhammad Akram, Sahibzada Sibgatullah, Shandana Gulzar Khan, Sajida Begum, Aliya Hamza Malik, Usama Qadri, Ali Gohar Khan, Mohammad Pervaiz Malik, Rana Muhammad Ishaq Khan, Abdul Rehman Khan Kanju, Syed Mustafa Mahmud, and Mahar Irshad Ahmad Khan, along with other senior officers from Ministry of Industries and Production.

 

Source: Propakistani

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