PSM fails to up production despite Rs 14 billion package

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ISLAMABAD - Federal Minister for Production Anwar Ali Cheema has told the ECC that the Chief Executive Officer of Pakistan Steel Mills Mohammad Javed has failed to achieve the 35pc capacity utilisation of the Mills despite a massive bailout package of Rs 14 billion. The Minister said that in view of the poor performance of the Administration, he would be submitting a summary to the Prime Minister for change of the Management. Sources said that earlier the Minister refused to attend the Senate Standing Committee on Industry and Production on the ground that the performance of CEO of Pakistan Steel Mills was not satisfactory and he would not defend the management

The ECC formed a committee for implementation and monitoring of KPIs for PSM. It was decided that the committee will monitor the implementation of the proposed KPIs of PSM and submit a report to it on quarterly basis. The CEO of PSM in his report stated that delay in the release of funds caused PSM to achieve only 14pc capacity utilization as compared to 25pc set out in the bailout package.

The Board of Director of PSM expressed its dissatisfaction with the level of production and delay in achieving first quarter targets. It feared that incase management does not take extraordinary steps to achieve the targets, entire bailout package can go in waste for which PSM management will be solely responsible.

Earlier, the ECC while approving the bail out package gave the PSM 35pc capacity utilization target at the end of December, 2012 and 40pc in January, 2013.

Courtesy: The Nation

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