There have been reports in the media that the current PML-N government is getting ready to pay Pakistan Steel Mill’s lazy employees salary by granting Rs 28.5 billion bailout package to PSM while also agreeing to release Rs. 600 million every month to the white elephant organisation.

The Minister of Production has wrongly informed the government that the PSM has not received any bailout packages in the past 5 years and instead he claims that PSM was granted only Rs 42 billion as a loan. But a simple search on Google reveals that the PSM has received more than Rs 25 billion bailout every year, with a total bailout grant of Rs 150 billion in past five years.

And during this time, the PSM has also accumulated loans, liabilities and debts of more than Rs 500 billion. All data is available online and published in newspapers. I would like to request the current government of PML-N not to fall for the fake promises of improved production by PSM workers and not to allow any government bailout or special fund for PSM. If the organisation cannot sustain its own working expenditure then it should reduce its costs by reducing staff, until it can become self-reliant. PSM has a requirement of 1600 staff at peak production, but the company has employed more than 2000 personnel with 17 percent production in five years.

I would also like to request the Auditor General of Pakistan to conduct an audit of PSM working of past 5 years and find out where all this money was spent. The Auditor General should also find out if the production of PSM was increased after huge investments were made by Russian upgradation team few years back? The salary and benefits received by PSM staff should also be compared to other departments, as there are reports that PSM staff not only get company houses, but also receive special rent allowance with the home.

The Government of Pakistan and the Minister of Industry should also find out why PSM’ steam electricity generator was not used in the past five years and PSM was purchasing electric current from KESC, when our country was facing so much energy shortfall and supplying energy to PSM meant that Karachi and other businesses had to suffer loadshedding.

The Pakistan Steel Peoples Workers Union (CBA) is the main culprit that is destroying the PSM. This organisation has very strong political affiliation and it is harboring criminals who have been employed in PSM through this organization, so that these criminals have free homes and salaries, while they do illegal activities in Karachi for their affiliated political parties. We the people of Pakistan strongly urge you not to spend our precious resources and our (taxpayers) money on these thieves.


Peshawar, September 3.