PAKISTAN Steel Mills (PSM) is a sheer example of neglect and
incompetence on the part of our successive governments. Dubbed as one of the country’s largest industrial units and the national asset was once the source of revenue but then what went wrong that its chimneys were shut for production indeed warrants a proper investigation and strict action against those responsible for its downfall.
Wednesday saw the PTI government taking a giant but politically difficult step to stop years-long haemorrhaging when the Economic Coordination Committee decided to terminate all 9,350 employees of Pakistan Steel Mills with due monetary benefits along with one month salary that will cost the exchequer Rs 18 billion to Rs 19. 7 billion. On an average, every sacked employee will receive Rs 2.3 million. The very decision is in line with the judgments and observations of the honourable Supreme Court of Pakistan. The Steel Mills is closed since 2015 and since then the federal government had been paying salaries to the employees. The PSM’s total expense on its employees in 2018-19 was recorded at Rs 9.54 billion that is 75.7 % of total production and operating expenses.
Thus instead of contributing to the national exchequer, the Steel Mills had become a burden. Hence, the government had no other option but to take this painful decision, and there should not be any politics on this issue as the monetary benefits of the laid off employees have been well taken care of. Such kind of golden handshake schemes had also been given in the past which in fact open opportunities for the young blood join the organizations and infuse new life in them. It must now be ensured that the employees get the money well in time. Then most importantly, the process of bringing the PSM back into the production mode either through public-private partnership or the privatization must be accelerated. A timeline should be set for this purpose. PTI Government had come to power with the slogan of improving governance and reforming the institutions and if it succeeds in reviving the PSM, it will be the great national service which will always be remembered. We will rather also suggest the government to introduce golden handshake schemes in other public sector departments which are overstaffed or lagging behind in performance.
