Daily Times

Minister of State for Parliamentary Affairs Ali Muhammad Khan on Friday informed the Senate that Pakistan Steel Mills (PSM) has suffered overall loss and liability of Rs67.1 billion from 30th June to 31st December, 2020.

Replying to a query during Question Hour, the minister said the major reasons of the loss of Rs8.247 billion during July 2020 to December, 2020 were periodic cost, depreciation expenses and accrued markup on bank and Government loans. During July, 2020 to December, 2020, the Federal Government released an amount of Rs11.441 billion for the payment of retirement dues to the employees who filed petitions in the Sindh High Court, he said.

He said an amount of Rs11.680 billion was also released for non-petitioners retired up to May 18, 2020 in compliance with the order of the Sindh High Court.

The Federal Government also released an amount of Rs11.013 billion for the payment of legal dues to the retrenched employees, he added.

The minister said an amount of Rs1.961 billion on account of net salary of PSM employees from July to December, 2020 was also released by the government.

All these funds released by the Government of Pakistan were incorporated as loans in the PSM’s books of accounts which increased the current liability by Rs36.094 billion during July 2020, to December, 2020, he said.

Furthermore, a remarkable increase in total liability during the period was caused by the increase in deferred liability by Rs30.202 billion due to deferred tax booked on surplus on revaluation of PSM’s assets, he said.

The minister said PSM was a profitable organization till 2008. However, it went into losses during Pakistan People’s Party (PPP) tenure and was completely closed in 2016 by the then Pakistan Muslim League Nawaz (PML-N) government, he said.

He said both PPP and PML-N past governments were responsible for ruining this national institution.