Karachi: The objection of the Board of Directors on the closure of Pakistan Steel came to light, the Chairman Board of Directors of Pakistan Steel opposed the closure of Pakistan Steel.
In a letter sent by the Chairman of the Board of Directors to important government officials, it is stated that the Board of Directors of Pakistan Steel does not agree to close down Pakistan Steel, the decision of the Cabinet to close down Pakistan Steel has been taken in haste on bad advice. There is no transparency in the decision to close down Pakistan Steel, the decision is not even in the national interest, the decision should be withdrawn.
Chairman Board of Directors Aamir Mumtaz wrote a letter to the President of Pakistan, Prime Minister, Finance Minister, Chairman SIFC, Chairman of the Standing Committee on Industry and Production of the National Assembly informing the Board of his opposition to the decision to close down Pakistan Steel. Concerns of off-directors and other stakeholders have been informed.
The letter states that the reports of closure of Pakistan Steel are cause for concern. The cabinet took the decision without consulting the board, stakeholders, industry representatives and economists. Closure of the steel mill will have serious economic and social consequences. The decision to shut down steel does not have public support, the people of Pakistan, stakeholders and industry want the revival of Pakistan Steel.
The letter said that the board’s recommendations for the revival of Pakistan Steel were ignored and the board was not consulted. The land of Pakistan Steel has not been estimated, the closure will lead to misuse of the land. The Government of Pakistan Steel should resolve the liabilities of Pakistan Steel and focus on rehabilitation.
The letter said that the closure of the steel mills will create more frustration and increase unemployment and a positive plan should be drawn up to withdraw the decision to close the steel mills, including government allies, industry experts and employees. Various stakeholders are concerned about the lack of transparency and consultation in the decision-making process.
The Chairman of the Board clarified in the letter that closure of steel mills would not eliminate or reduce the annual expenditure as 90% of losses are due to finance or interest charges on liabilities, which need to be settled, Pakistan at large. How can the government justify the closure and dismantling of an important national manufacturing facility when manufacturing has lagged so far behind? Government should focus on rehabilitating mills and maintaining them on a large scale.
According to the Chairman Board, there is a need to revive the existing large-scale manufacturing industry like Pakistan Steel with further investment. could lead to misappropriation and looting, the government should resolve the liabilities of the steel mill in the national interest instead of resorting to closure.
