Salahuddin Haider
PAKISTAN International Airline and Pakistan Steel Mill, being vital national assets, now need urgent, and focused attention. While production minister Hammad Azhar recently stated that Since the Pak Steel Mill had become a liability on exchequer, it has to be privatized or run on private-public partnership basis.
Likewise PIA is a national flag carrier. In words loud and clear it is country’s ambassador round the world, had enjoyed envious reputation at one time, but was now in financial mess. With some focus it can regain its prestigious position.
While Steel Mill, according to minister, after suffering heavy losses for four consecutive years, finally was closed in 2015 as a worthless organization. PIA downfall started in late 90s when it’s then Chairman Shahid Khaqan Abbasi, under golden handshake scheme, got rid of a huge number of trained hands, officers, technician, low grade employees. Those were the people who not only ran PIA but took it to pristine heights because of their expertise, sincerity, commitment and loyalty. They were all thrown out for no rhyme or reason. While a small number of them were absorbed in Shaheeen Airline, or few foreign airlines, rest were lost in the wilderness.
As President and martial law administrator, General Ziaul Haq during a visit to PIA headquarters advised its then chairman Air Marshal Nur Khan to relieve the institution of the burden of substantial number of employees. But Nur Khan in my presence (as I was a PIA reporter and very close to Nur Khan, overheard the conversation.
Air Marshal’s reply to General Zia’s command was simple and straightforward. ‘Why do you wish to earn a bad name and throw people out of job? We in airline will earn money for you also’. His defence, indeed was logical, for he believed that an organization, flourishing and vibrant, must keep expanding. The philosophy of retreat would ultimately lead to disaster, recovery from where would be well nigh impossible.
His words proved prophetic, for when Abbasi started reversing time-honored motto, there became a slump, which kept going down and down with the passage of time. It was the beginning of a disaster. He relied heavily on bank loans to pay for the forced retirement of the employees, shut down its principal stations like Switzerland, Denmark, Holland, Singapore, Jakarta etc, Naturally An airline, counted among the best in the world, fell prey to a machinations, wittingly or unwittingly. Repayment of Bank debts became a liability, and today airline has shrunk to the level of a regional airline, serving few chosen stations, rather than being a global network.
It is now heavily under debt, its fleet comprising 37 aircraft, ATRs. Its present chief Air Marshal Arshad Malik is doing a yeomen service trying to regain its lost prestige, but the task is onerous, and now that the European Union has refused to lift the ban on airline’s services to its member states, the task looks doubly daunting. As for Steel Mill, Peoples party government, shoved its workers as populist measure without realizing that a corporate organizations, had to run on established rules of economy.
There has to be a balance between wages and salaries, perks and privileges. In 20008, Pak Steel was in profit of Rs 800 crore, It was commissioned in mid 70s by then President Z A Bhutto, and produced steel, billets, and a number of other items for local industries, besides serving the armed forces requirement of building tanks, aircraft, and seas-going vessels for Pakistan Navy, Its benefit were enormous, but its decline started because of political patronage, its workers number soared to 27000, and 2600 low grade workers were promoted illogically to officers grade.
During Pervez Musharraf era, retired Col Afzal took over its stewardship and the Mill showed a profit at the rate of Rs 200 crore a day. Between 2012 and 2014, after it landed in financial mess, it was finally shut off in 2015. India after the Nefa war with China opted for a network of Steel Mill, and today it has 21 such institutions. India is also can boast of raw material for the Steel Mill, but Pakistan because of strained relations with India, had to import iron from distant Australia, spending massive amount on shipment, freight insurance etc.
According to Hammad Azhar, Pak Steel is spread of over 11000 acres of land, its total land area is 1s roughly over 9000 acres. In 2006, then Prime Minister Shaukat Tareen, along with some eminent businessmen bought it for Rs 21 billion rupees. The Supreme Court reversed that deal because the price was far less than the land price itself. Pakistan Steel is now shut off. Whether the present government succeeds in reviving its efficacy remains to be seen.
