—File Photo

ISLAMABAD: Minister for Industries and Production Hamad Azhar Thursday said the government has decided to privatize Pakistan Steel Mills in order to revive and steer it out of losses.

The federal minister held a press conference and told that the PSM issue has been ongoing for a decade and its loan has now exceeded Rs 230 billion.

The steel mill went into deficit in the Pakistan Peoples Party (PPP) tenure and was closed in the Pakistan Muslim League-Nawaz (PML-N) government.

“The federal government pays Rs 70 million per month in terms of salaries, losses and interest of the mill whose future must be decided. Rs 55 billion were paid in salaries in last five and half years. There is no fault of the workers in shutting of the mill.

“Around fifteen parties are interested in privatization of the PSM. The government is going towards public-private partnership for restoration of the steel mill,” he said.

“The PSM went into deficit in the tenures of those political parties which were criticizing the government’s decision yesterday. They are only busy in point scoring. The ECC’s proposal will be presented before the federal capital.”

“The machinery and equipment installed on 1,800 acres will be privatised, while the 18,000 acres will remain the government’s property. Fifteen parties have reached out to the government so far,” Hammad remarked.

Azhar said the government was changing its role from being owner and operator to owner-and-policy maker and the Mills are a “white elephant” that the country needs to get rid of, especially at a time when the country’s economic situation is worsening.

A Rs20 billion package has been prepared for the employees and each of them will be given at least Rs2.3 million as golden handshake. There are 9,350 employees who will be fired within a month and another 250 will be let go within three months.

He said the employees will be relieved in two phases with payment of their retirement dues and one month salary.—NNI