MoF unable to devise mechanism for PSM employees

ZAHEER ABBASI

ISLAMABAD: Finance Ministry has been unable to develop a mechanism to ensure that the salaries of Pakistan Steel Mills (PSM) employees’ are paid until a restructuring plan of the entity is finalized.

Sources revealed that the salaries of PSM employees for the period of December 2013 and January 2014 were approved by the Economic Coordination Committee (ECC) of the Cabinet after it was informed that there was unrest among the employees. Sources added that the issue was discussed at length by the ECC on March 27 and the Privatization Commission was directed to come up with a comprehensive restructuring plan in the next meeting.

After the passage of more than 20 days one ECC meeting has taken place since the issue was discussed but there is no indication that any restructuring plan has been prepared or Finance Ministry has developed any mechanism as requested by Ministry of Industries and Production for payment of PSM employees’ salaries. The meeting was informed that PMS employees have not been paid since December 2013 onward and there is unrest amongst the employees. In the recent past the PSM employees created a law and order situation.

Sources said the Ministry also expressed fear that the interruption in payment of salaries may lead to violent agitation anytime soon. To avoid any untoward incident that may occur, appropriate measures are needed to be taken for an early release of the salaries pertaining to the period from December 2013 to March 2014. Finance Division supported the release of two months salaries, i.e. December, 2013 & January, 2014, instead of proposed four months salaries (December, 2013 to March, 2014) when it was referred the matter.

The ECC requested that the Finance Ministry may be advised to arrange the payment of the salaries for the months of December, 2013 and January, 2014, immediately, as committed, besides taking steps towards evolving a mechanism to ensure the regular disbursement of salaries to PSM’s employees till the finalization and implementation of the privatization/ revival plan.

Finance Ministry has also committed to the International Monetary Fund (IMF) under $6.64 billion Extended Fund Facility (EFF) that it would hire financial advisors by end-March 2014 and prepare a comprehensive restructuring plan. Privatization Commission reportedly stated during a meeting to review the privatization process before Finance Minister Ishaq Dar’s departure to Washington to attend the IMF/the World Bank spring meeting that restructuring plan for the revival of PSM is still to be finalized.