Directors oppose closure of Pakistan Steel Mills

Board of Directors of Pakistan Steel Mills has opposed closure of the mill and demanded the government to withdraw the decision, reported 24NewsHD TV channel on Thursday.

Chairman Board of Directors Aamir Mumtaz wrote letters to President, Prime Minister, Finance Minister, SIF and Senate Standing Committee in this regard.

Chairman Board of Directors wrote in his letter that the decision to close the steel has been taken hastily.

Chairman Board of Directors said closing the steel mill will have serious economic and social consequences.

Chairman Board of Directors further said closing the steel mill will create more frustration so the decision to close the steel mill should be withdrawn and a positive plan should be prepared.

The Federal Cabinet was ill-advised on the steel issue and ignored consultation with the board and other industry and economic experts, Chairman Board of Directors said.

He said the suggestions made by the Board of Directors of Pakistan Steel were also ignored.

Various stakeholders including government allies, industry experts and employees are concerned, said Chairman Board of Directors.

The Chairman said there is concern over the lack of transparency and consultation in the decision-making process and closing a steel mill does not eliminate or reduce annual costs.

He said 90 percent of losses are due to finance or interest charges on liabilities.

Chairman Board of Directors further said that Pakistan is a very backward country in mass manufacturing so how can the government justify closure and termination?

He suggested government should focus on rehabilitating mills and maintaining them on a large scale.

The closure of Pakistan Steel Mill will increase employment problems, he added.

Establishment of new industrial unit is required to deal with unemployment in the country, the Chairman said.

Existing large-scale manufacturing industries like Pakistan Steel need to be revived with further investment, he suggested.

The closure was announced without proper analysis of the impact on the land assets of the steel mill while a viable plan can lead to misuse and looting of land assets, Chairman said.

There is no public support for closing the steel mill and instead of resorting to closure, the government should resolve the liabilities of the steel mill in the national interest.

The Chairman Board of Directors said focus should be on reviving mills and maintaining mass manufacturing capabilities.

Reporter: Taha Malik