ECC approves firing all Pakistan Steel Mill employees

[Yaseen1]

i think if govt has avoided 100billion rs wasted in sugar and flour corruption this is enough amount for replacing old machinery of steel mills and running it in efficient manner but their supporters will always hide behind lame excuses of lack of funds,such funds are easily generated by doing corruption but for national assets they are unable to arrange finances,main problem is lack of political will and corrupt preferences

i can still see 79 corollas and datsuns on street. doesnt mean they are new, or that their efficiency is on par with the new one. also, only a small part of it was operational, not even 10%.

PIA has hope under air marshal. Railways under sheikh rasheed only passion and lack of critical thinking, so I have very little hope, but if he is actually gunning for ML1 project as he shows we will reap the benefit of such project for decades.
But to understand the limitation we need to look at the deep rooted problems in these organizations. 1) No funds available for any major infrastructure/equipment upgrade 2) Filled with political appointees with little productivity and no merit under legal cover. 3)Running huge deficits 4) Politicized unions opposing and sabotaging any step taken in the right direction for political gains.

It is easy to point fingers but it will take a lot of time, patience to turn them around.

 

[S.Y.A]

i think if govt has avoided 100billion rs wasted in sugar and flour corruption this is enough amount for replacing old machinery of steel mills and running it in efficient manner but their supporters will always hide behind lame excuses of lack of funds,such funds are easily generated by doing corruption but for national assets they are unable to arrange finances,main problem is lack of political will and corrupt preferences

Do you know how the govt works? Read up on ppra. Selecting and procuring the right thing would take year, at least. Then there will be kickbacks and commission. A thing worth 100billion will cost 300billion. Current labour doesnt know anything about operating new machinery, and are mostly men in their 40s- late 50s, hence cant be expected to learn and work on them. They are siyasi anyways, so any attempt to make them work will result in strikes.

Then the govt's way of sourcing raw materials is also based on ppra = expensive material = expensive product = unable to compete in the market. And we are back to square one with the steel mill just supplying ksew or pof or hit. Which is nowhere near enough to justify running this thing. It wont earn enough to fund its expenditures (salaries, utilities, maintenance costs),, will have to go to the govt to provide bail out packages worth billions. And the cycle will go on.

 

[El Sidd]

Do you know how the govt works? Read up on ppra. Selecting and procuring the right thing would take year, at least. Then there will be kickbacks and commission. A thing worth 100billion will cost 300billion. Current labour doesnt know anything about operating new machinery, and are mostly men in their 40s- late 50s, hence cant be expected to learn and work on them. They are siyasi anyways, so any attempt to make them work will result in strikes.

Then the govt's way of sourcing raw materials is also based on ppra = expensive material = expensive product = unable to compete in the market. And we are back to square one with the steel mill just supplying ksew or pof or hit. Which is nowhere near enough to justify running this thing. It wont earn enough to fund its expenditures (salaries, utilities, maintenance costs),, will have to go to the govt to provide bail out packages worth billions. And the cycle will go on.

yes everything will take years.

the only that doesn't take years is the process of privatisation.

 

[Yaseen1]

we will see what govt does next,if they scrap it anyone buying it will not set up new steel mill like original one as they have to invest and bring new machinery from scratch and if these private businessmen wanted to develop such steel mill on their own they would have done this in last 70yrs,most private steel mills are only limited to developing reinforcement steel bars used in construction of houses,buildings and bridges,they mostly use scrap imported raw material from foreign countries and make their products as it is much easier job and required less effort and money,on the other hand Pakistan steel mills was developed for making much more diversified products made from extracted metals and is required for metallurgy and indigenous development of heavy machinery and defense equipment .The other reason of loss of steel mill is the lack of demand of the products of steel mills as other factories who develop heavy machinery and other finished products from the output of such steel mills are not operating here

Do you know how the govt works? Read up on ppra. Selecting and procuring the right thing would take year, at least. Then there will be kickbacks and commission. A thing worth 100billion will cost 300billion. Current labour doesnt know anything about operating new machinery, and are mostly men in their 40s- late 50s, hence cant be expected to learn and work on them. They are siyasi anyways, so any attempt to make them work will result in strikes.

Then the govt's way of sourcing raw materials is also based on ppra = expensive material = expensive product = unable to compete in the market. And we are back to square one with the steel mill just supplying ksew or pof or hit. Which is nowhere near enough to justify running this thing. It wont earn enough to fund its expenditures (salaries, utilities, maintenance costs),, will have to go to the govt to provide bail out packages worth billions. And the cycle will go on.

 

[SoulSpokesman]

The right thing to do would be to close the mill, monetise its real estate, which would be worth a bomb, and get the proceeds to set up a giant scale shore based mill around Gwadar. This mill would have better technology, better cost structures and would meet the needs of the country, including capex under CPEC.

Regards

 

[S.Y.A]

The right thing to do would be to close the mill, monetise its real estate, which would be worth a bomb, and get the proceeds to set up a giant scale shore based mill around Gwadar. This mill would have better technology, better cost structures and would meet the needs of the country, including capex under CPEC.

Regards

So sell one mill that the govt cant handle, and use the money to setup another mill, that govt wont be able to operate either?

 

[Bouncer]

What is going on in this country. Why firing all the employees. One should fire the unnecessary staff and cut cost and by getting rid of the excess staff, made it viable to do business. But seems that they want to shut down the steel mills completely and switch over to imports. Bad planning

Read the article. PSM hasn't done anything other than importing raw material, let it rust and then sell it as scrap for past 5 years.

As much as Khadim Rizvi's mix tape

 

[Type59]

People should remember PPP ran company into the ground. I read an article that highlighted how the head of company (ppp appointed) bought raw materials at inflated prices, massive kickbacks. Profitable under mushy then PPP looted it.

 

[Jinn Baba]

First he opposed privatisation of the steel mills under PMLN, then tried to privatise them himself when PTI came to power.

He claimed that if PTI won, he would improve management and the steel mills will start to perform. Now he's laid off thousands of employees and steel mills remain closed.

Wah IK! At least you have been consistent with your u-turns.

 

[AZADPAKISTAN2009]

Excellent decision by Prime Minister of Pakistan , Imran Khan

Pakistan's National Government gave 8 billion dollars to Sindh in the current year to solve Sindh's needs yet PPP could not solve the Steeles Mills Issue with simple allocation of funds or putting in charge a capable CEO or Directors who had education background to run a company.

Then Prime Minister of Pakistan , Imran Khan gave Karachi extra 1.5 Billion dollars which is enough to solve any country's city wide issue however again Sindh Government could not utilize the funds to solve Steeles Mills Issue because it is located in Karachi

Since the Sindhi Government , by PPP is not capable of putting even 0.01% fund given to it from Government of Pakistan , the issue of Steeles Mills could not resolved.

It makes logical sense to sell a State owned entity in Sindh because the Federal Authorities can't control the State owned entity , unless Province of Sindh Cooperates

Peoples Party of Pakistan has miserably failed to execute successful project (local management)



It is unfortunate that people do not understand the simple mechanism of how much bad influence Sindhi Government [PPP] has on bad operation of many corporations in Sindh


Only under General Musharraf Sahib's time all State owned entities made profit because he brought in capable staff


Any person with limited Business Sense , could have revived Steeles Mills with the amount of Money Support Prime Minister Imran Khan gave to Sindh this year, financially had this amount of support was given to private firm it would be like Amazon or Google.



Amount Given 2019-2020 Budget to Sindh : 8,000,000,000 USD dollar
Top Up given to Sindh for Karachi : 1,500,000,000 USD dollar

Even just 0.5 % of this amount was enough to 100% make Steeles Mills brand new



The biggest issue in our society is that people don't realize how much money goes into Private salaries and perks in Sindh vs How much is actually spent on Money Making Projects




Why are CPEC project successful ?

• Simple Chinese are managing the Show, such projects start and end on time and hiring is done based on education and strength of hire's personal skills.

Why is Sindh failing otherwise ?

• Political Hiring in other projects or contracting. The Education credentials in Sindh have suffered in order to give a paper Degree to maximum number of people who technically can't even write an essay without looking at Support book. Every Mama Chacha has a Degree in Sindh but they can't use it to even clean their neighborhood

If a entity is owned by State all Hiring should be done in Islamabad , and Federal Exams should be conducted there for hiring + Interviews if such mechanism can't exist their is no point to have State of Pakistan , waiting on Province of Pakistan to do something about it

 

[Khatri_pune]

What is going on in this country. Why firing all the employees. One should fire the unnecessary staff and cut cost and by getting rid of the excess staff, made it viable to do business. But seems that they want to shut down the steel mills completely and switch over to imports. Bad planning

Most probably will be transferred to Chinese investor at dirt cheap price...

 

[CrazyZ]

so is the diesel locomotives of Pakistan Railways.

Rail Way doesn't have to worry about low cost imports. PSM cannot compete with imported steel because it is inefficient...to many workers.....old out dated equipment with little automation. It can not compete in the global market.

 

[Syed1.]

The right thing to do would be to close the mill, monetise its real estate, which would be worth a bomb, and get the proceeds to set up a giant scale shore based mill around Gwadar. This mill would have better technology, better cost structures and would meet the needs of the country, including capex under CPEC.

Regards

That's like detonating your house if the the plumbing is not working and building a new house from scratch.

Here are a few facts for you:

1. Most of the ancillary equipment and services still run
2. The plant machinery is outdated but it can easily be replaced in short lead time as opposed to building a new plant from scratch.
2. PSM is located on the coast, with direct rail linkage to ports and upcountry
3. It has thousands of acres of unused land still under its ownership
4. Large pool of skilled and semi skilled workforce to draw from in Karachi (not the case in Gwadar)
5. It has dedicated power generation which would need to be provided for a Gwadar steel mill



So Gwadar or (Sonmiani/Pasni/Ormara) should get it's own massive steel mill, but not at the expense of the already available steel mill in Karachi

 

[Enigma SIG]

Anything government run is inevitably going to come crashing to the ground (see PIA, pun intended)

 

[Syed1.]

Anything government run is inevitably going to come crashing to the ground (see PIA, pun intended)

Too soon