Mired in myriad troubles rooted in mismanagement, corruption, and union unrest, the ailing industrial colossus remains unamenable to a turnaround under public sector management.
By Naveed Naqvi
ISLAMABAD: Squatters backed by powerful interests had grabbed PKR 5.16 billion worth of land belonging to the state-owned Pakistan Steels Mills (PSM) by 2019 and the activity continues with no end in sight, an elite parliamentary panel heard Tuesday.
The subcommittee of the Public Accounts Committee met at the Parliament House under the chairmanship of convener Wajiha Qamar to consider audit objections for the fiscal year 2017-18 and 2018-19 related to the Ministry of Industries and Production.
It was revealed that a loss of PKR 5.16 billion was incurred on national exchequer due to possession of land of Pakistan Steel Mills.
Built in Karachi with help from the Soviet Union in the 1970s under Prime Minister Zulfikar Ali Bhutto, PSM is Pakistan’s largest industrial enterprise and the backbone of the country’s steel industry. Its steel and iron foundries have total production capacity in the range of 1.1 million tonnes to 5.0 million tonnes.
PSM has title to approximately 19,000 acres (about 75 square kilometre or 29 square miles) of land. This includes about 10,390 acres for the main plant; 8,070 acres for the township; and 200 acres for a 110-million-gallon water reservoir.
In addition, it has leasehold rights over an area of 7,520 acres for limestone and dolomite quarries in the Makli and Jhimpir areas of Thatta district
The committee heard that unscrupulous officials inflicted losses to the tune of PKR 1.4 billion on the enterprise by selling land parcels at throwaway prices in the years under review. What is more, as much as over 850 acres of PSM land has been grabbed by squatters backed by powerful interests.
Convener Wajiha Qamar said that the encroachers have been in possession of the grabbed land for decades. Noting that PSM has not been able to squeeze any concessions from the squatters so far, she lamented that the magnitude of squatting was bourgeoning every year. She stressed the need for a middle path to be found with a view to resolving the matter.
The audit authorities warned not to allow the encroachment to proceed but to control it. PSM officials said that 95 acres of land has also been reclaimed from squatters. They said the squatting activity could have ended were it not for political patronage from elements within the Sindh government.
Afzal Dhandla, a member of the committee, said that the squatters might as well be given title to the land they occupy in return for money to put the matter to rest once and for all.
The convenor said this would be tantamount to rewarding the mafia and encouraging further squatting. The committee was told that the matter is also in the court, the place cannot be given on lease.
The committee was asked for a third-party audit. Additional Secretary Industries and Production said that an independent auditor will have to be hired for the third-party audit, for which the process has started.
The committee was informed that the process of privatisation is also underway, which will benefit the country. The committee adjourned the matter till the report of ministry regarding progress.
Managed by the civil bureaucracy, PSM has stacked up billions of rupees in losses, chiefly because of mismanagement, corruption, and industrial unrest. The initiative to privatise PSM to disencumber the exchequer of the losses first came under former prime minister Shaukat Aziz, but was soon mired in litigation.
The matter has since been alive as the public sector managers have been unable to turnaround the mammoth enterprise, surfacing every few years but failing to make any headway.
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