Pakistan Steel Mills

[AZ1]

The shortage of Petrol
Hike in prices of sugar
Economy down to - ve and contracted in 68 years
Harvesting wheat and then importing it for the benefits
Circular debt crossed 2 trillion
Highest inflation

These things are the indicators of the performance of the mighty Imran Khan for more check out the economic survey of 2019-20

Now on coming to PSM PMLN announced to privatise PSM IN 2016 and guess what PTI went against it

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In 2017 PMLN wanted to give PSM on lease and wave off 5000 employees and again PTI and PPP were against it that better management can make it PSM run again


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This move was also opposed by PTI PPP and employees of PSM and they started protesting against the government


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The shortage of Petrol - temporary mafia working we all know it.
Hike in prices of sugar - Even court today gave stay order for the prices? https://defence.pk/pdf/threads/ihc-...s70-kg-for-next-10-days.670644/#post-12419717


This is why We like Imran khan, even if it's goes against his own narrative, he takes actions against his own for the sake of Pakistan.

This is not enough for you? that for from last 10 years PSM producing zero productivity?

It is not enough for you that from last 5 years, Employees of PSM getting paid without doing single day work?

Do you want all pakistan to pay for these employees even they don't work?

How many PSM employees already doing jobs for last 10 years? 400B rupees is not enough for PSM employees for last 10 years?


Yet PTI giving them 23 lacs per employees average.


if these are not enough then take a look at this a look for govt employees.

You should be thankful that PSM is going away because we have to pay taxes to give to these employees with zero productivity of PSM.

 

[Patriot forever]

Just look in your hypocrisy, you are talking about why PIA is in loss in 2020 and on other thread you are asking why country is not in lock down.

https://defence.pk/pdf/threads/ptis-no-lockdown-policy-will-take-a-bigger-toll-on-economy.670681

Perfect example of na shukri jo kabhi khush nahi reh sakta.

PIA was on a recovery path before covid. One of the major problems of PIA is its high operational costs, just look at the number of employees in PIA as compared to Etihad. These political unions backed by PLMN and PPP are the biggest hurdles in its progress. As soon as they were taken to task, they went to court against ACM. 'Ghar ki londi bana rakha tha government institutions ko in their tenures'. Just a few examples

And now their media cell has the audacity to criticize PTI. Such a shame.

 

[The Accountant]

So is PTI following their own stance?? Is PSM being sold after stabilisation??

PMLN announced privatisation of PSM in 2016 Che k your facts again

PSM cannot be stabilized its closed since 2016.

PMLN announced it in 2016 at that time PSM could have been revived as Blast furnance was still functioning. The again announced it in 2018 and at that time Asad Umar announced during election campaign that we will not let this happen to employees of steel mill that they remain unpaid.

Now after remaining closd of 4 years steel mill need a major overhaul. My father and his brother spend their whole professional career in PSM. I know PSM much better than you. Once a mill like this get stopped restarting it requires alot of investment as the steel get cooled down and destroy furnance and machinery.

The idea is to sell it to such a buyer who can invest to restart it.

 

[ziaulislam]

Great step if they can manage it, I wish them government godspeed. This is long overdue.


Although it is sad to see this sort of opportunistic opposition to a necessary step. PTI did the same a few years ago. Why can’t these people work for the national interest for a change?

i dont blame opposition here..there is something called politics here.. I will be interested in what PTI does..politician talking won't affect the govt performance..

in short its actions that matter and will see how the govt does in next 3 years..

however, dont expect growth..most countries are in recession, its global crisis and there is nothing govt can do about it..
long term reforms and projects are what i will judge this govt with

 

[VCheng]

The idea is to sell it to such a buyer who can invest to restart it.

Any such buyer can only be found if the mill can be made to run at a profit for its products in the face of stiff global competition.

 

[Jungibaaz]

however, dont expect growth..most countries are in recession, its global crisis and there is nothing govt can do about it..
long term reforms and projects are what i will judge this govt with

Actually it’s even worse for us, while our GDP growth won’t be negative as theirs is, they are all responding by increasing spending massively and pumping liquidity into their financial system.

In Pakistan, our creditors at the IMF are demanding we do the opposite, belt tighten for FY2021. Reduce current expenditure and bring the twin deficits down. We’re often pointing at the situation in India, they have both fiscal and forex space to move against the pandemic and bolster their economy. This is why we gave up on lock down. IK likes to talk about ‘smart lockdown’, I’m sorry but it’s bs. We have given up lockdown because we can’t afford it, plain and simple. Let some of them die of corona if they must, we can’t do a full lockdown; that is the rationale.

We don’t have the space to respond to covid, and our existing creditors who we owe existing loans are telling us that not only can we not respond, we have to do the opposite and actively reduce growth.

Next budget will be a bad one. If there’s one wish I had, it’d be that capex isn’t cut, and the dam funding in there is at least Rs.100bn+

 

[The Accountant]

Any such buyer can only be found if the mill can be made to run at a profit for its products in the face of stiff global competition.

Yes and one of the prime reason of non-profitability was excess staff. As per report submitted by PSM's own management mill can be run with 1,000 staff as it is capital intensive mill and not labor intensive but at the time mill was closed it had 11000 plus employees and that too after years of hiring freeze. Few year back there were 15,000 plus employees. How can a company be profitable with 15 times of the required workforce?

Plus the mill was running its own fleet of buses. The bus driver were earning more than 50K a month at a time when average income of bus driver in the market was no more than 10K and minimum salary in Pakistan 7K on the other hand engineers were being hired on contractual basis in the same company at 15K to 25K only.

In short getting rid of that staff is necessary to run PSM

 

[VCheng]

Yes and one of the prime reason of non-profitability was excess staff. As per report submitted by PSM's own management mill can be run with 1,000 staff as it is capital intensive mill and not labor intensive but at the time mill was closed it had 11000 plus employees and that too after years of hiring freeze. Few year back there were 15,000 plus employees. How can a company be profitable with 15 times of the required workforce?

Plus the mill was running its own fleet of buses. The bus driver were earning more than 50K a month at a time when average income of bus driver in the market was no more than 10K and minimum salary in Pakistan 7K on the other hand engineers were being hired on contractual basis in the same company at 15K to 25K only.

In short getting rid of that staff is necessary to run PSM

Getting rid of excess staff is actually the easy part. Producing quality steel at price that delivers a return on the investment in the face of global production is the hard part.

 

[Syed1.]

Actually it’s even worse for us, while our GDP growth won’t be negative as theirs is, they are all responding by increasing spending massively and pumping liquidity into their financial system.

In Pakistan, our creditors at the IMF are demanding we do the opposite, belt tighten for FY2021. Reduce current expenditure and bring the twin deficits down. We’re often pointing at the situation in India, they have both fiscal and forex space to move against the pandemic and bolster their economy. This is why we gave up on lock down. IK likes to talk about ‘smart lockdown’, I’m sorry but it’s bs. We have given up lockdown because we can’t afford it, plain and simple. Let some of them die of corona if they must, we can’t do a full lockdown; that is the rationale.

We don’t have the space to respond to covid, and our existing creditors who we owe existing loans are telling us that not only can we not respond, we have to do the opposite and actively reduce growth.

Next budget will be a bad one. If there’s one wish I had, it’d be that capex isn’t cut, and the dam funding in there is at least Rs.100bn+

Dam funding at Rs.180b for FY21

 

[The Accountant]

Getting rid of excess staff is actually the easy part. Producing quality steel at price that delivers a return on the investment in the face of global production is the hard part.

Agreed, to start with the PSM needs to be protected via import duties and cheaper gas.

The irony of steel industry is there are too many cartels having complete vertical integration from mining till end products. Competition is tough

 

[VCheng]

Agreed, to start with the PSM needs to be protected via import duties and cheaper gas.

The irony of steel industry is there are too many cartels having complete vertical integration from mining till end products. Competition is tough

And the part in bold is exactly how the slippery slope to protectionism starts that lands such state-funded enterprises in the trouble such as what is happening with PSM in the first place. High tariffs and energy subsidies are never the solution, as we can see from the records of many such enterprises over the last several decades.

 

[The Accountant]

And the part in bold is exactly how the slippery slope to protectionism starts that lands such state-funded enterprises in the trouble such as what is happening with PSM in the first place. High tariffs and energy subsidies are never the solution, as we can see from the records of many such enterprises over the last several decades.

agreed but even in private sector protection needs to be given to restart it. However its has to be time bound.

An industry of nature cannot be run without support till it achieve its minimum capacity which can take a couple of years.

 

[Jungibaaz]

Dam funding at Rs.180b for FY21

Kudos to this government then, we’ll need on average about that much per year from now on, not counting inflation and any further PKR devaluation.

 

[Crusher]

The shortage of Petrol
Hike in prices of sugar
Economy down to - ve and contracted in 68 years
Harvesting wheat and then importing it for the benefits
Circular debt crossed 2 trillion
Highest inflation

These things are the indicators of the performance of the mighty Imran Khan for more check out the economic survey of 2019-20

Now on coming to PSM PMLN announced to privatise PSM IN 2016 and guess what PTI went against it

View attachment 640840

In 2017 PMLN wanted to give PSM on lease and wave off 5000 employees and again PTI and PPP were against it that better management can make it PSM run again


View attachment 640844

This move was also opposed by PTI PPP and employees of PSM and they started protesting against the government


View attachment 640847

View attachment 640848


Just like I said PIA profits were skyrocketed before coronavirus but due to coronavirus everything came down weather its economy tax collection PIA etc

This only proves that all these political parties PMLN, PPP and PTI are self-serving opportunistic POS.

 

[Archie]

You guys should have sold it to Arcelor Mittal when they had offered 1 billion USD back in 2012, when Nawaz was in Power and steel prices were booming

Now due to Pandemic, your only option is a shutdown or gifting it to some Chinese investors at a throwaway price