KARACHI: The government has decided to privatize the core operations of the country’s mega state-owned enterprise, Pakistan Steel Mills (PSM) Corporation Limited, said Federal Minister for Industries and Production Hammad Azhar while briefing the Senate on Friday.
“The previous governments failed to revive or privatize Pakistan Steel Mills which remained defunct for several years,” he said, adding: “Only the core operations of the PSM will be privatized while its land will still remain in the possession of the PSM corporation.”
Azhar told a press briefing in Islamabad on Thursday that about 15 parties were interested in taking over the operational charge of the PSM project.
“Pakistan Steel Mills is facing a loss of Rs 176 billion … Its revival plan will be presented to the federal cabinet for approval very soon,” he said while addressing the news conference.
Pakistan’s federal government on Wednesday decided to lay off some 9,350 employees of the mega state-owned entity, a step that was widely viewed as an effort to clear the way for the privatization of the mill.
The Economic Coordination Committee (ECC) gave a go-ahead to a “full and final human resource rationalization plan for the Pakistan Steel Mills employees in accordance with the judgments and observations of the Supreme Court of Pakistan and other courts hearing cases involving the PSM,” said a Ministry of Finance statement issued after the ECC meeting chaired by the prime minister’s adviser on finance and revenue, Dr. Abdul Hafeez Shaikh.
Government functionaries insist the move should not be labelled as a lay-off plan since PSM employees were getting golden handshakes for which the government had allocated Rs 19.7 billion.
“All employees will get a financial package of an average of Rs 2.3 million as compensation,” Azhar said.
Government officials also claim that the amount covers about two to three years of employees’ salaries.
“The move will help us save Rs 700 million of the people’s hard-earned taxes a month [in salaries and other expenses],” the minister for industries noted while justifying the government’s measure.
Pakistan has paid Rs 92 billion to cover the mill’s liabilities in the form of employee salaries and bailouts since 2008.
The PSM Stakeholders’ Group, a representative body of employees, pensioners, suppliers, dealers and contractors, puts the accumulated losses of the mill at about $11 billion due to the closure of plants and import of steel items.
However, it has also opposed the government’s decision to lay off works and privatize the mill.
“This is a bombshell not a golden handshake,” commented Mumrez Khan, convener of the group.
“They are not paying our arrears of Rs 85 billion and describing their Rs 18 billion as an act of generosity,” he told Arab News. “Since 2013, the dues of retired employees accumulated to Rs 22 billion as well and were not paid by anyone.”
Labor unions have suggested to adjust employees in other departments instead of laying them offs amid the coronavirus pandemic. The have also started protesting against the government in Karachi in the wake of the official decision.
“The government has turned us into scapegoats and sacrificed our interest to gobble up the precious land of the mill that is worth billions of rupees. It must understand at this stage that the virus infections are high and our protests may take a dangerous turn,” Mirza Maqsood, president of the Voice of Pakistan Steel Officers Association, told Arab News.
“Instead of total layoffs,” he added, “employees should be adjusted in other government departments.”
Chairman of the National Assembly Standing Committee on Industries and Production Sajid Hussain Turi announced to take up the matter in parliament to get “the lingering issue resolved through democratic means.”
“This should have been done through parliament. Parliament was not taken into confidence before making the decision and now this matter will be raised over there for debate,” Turi told Arab News, adding: “This is not only the issue of 9,350 people but a question of more than 100,000 families who depend on them and expect the revival of the mill.”
He said that his committee had floated recommendations for PSM’s revival, including the release of $300 million demanded by its chairman to operationalize the plant.
“Russian, Chinese and Iranian companies had offered to revive the defunct entity,” Turi, who belongs to the opposition Pakistan People Party, added. “Prime minister Imran Khan himself wanted to revive the state-owned enterprise.”
“The government doe not have a plan,” Mumrez Khan of the stakeholders’ group said, adding: “The stakeholders also submitted a revival plan that included rationalization of tariff and accountability, but the government did not pay any heed.”
Spread over an area of 18,600 acres with 10,390 acres for the main plant, Pakistan Steel Mills is located 40 kilometers away from Karachi in the Port Muhammed Bin Qasim vicinity.
The country’s mega corporation witnessed a decline in its production between 2008 and 2015 before it was shut down when it failed to pay Rs 20 billion in gas bills, according to the stakeholders’ group.
The PSM has a production capacity of 1.1 million tons of steel that is extendable to 3 million tons per annum. The main products of the mill include coke, pig iron, billets, cold rolled sheets, hot rolled sheets and galvanized sheets.
Fifteen parties interested in taking operational charge of Steel Mills — industries minister
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Fifteen parties interested in taking operational charge of Steel Mills — industries minister
- Hammad Azhar says only “core operations” of mills to be privatized, land to remain in government possession
- Government recently announced “human resource rationalisation plan” for 9,350 employees widely viewed as lay offs
Government arrests two human smugglers linked to Greek boat tragedy that killed five Pakistanis
- FIA says Muhammad Aslam and Saeed Ahmed were arrested in separate operations from Gujranwala and Gurjat
- Investigations reveal victims of the boat tragedy paid over $30,000 after being promised safe passage to Europe
KARACHI: Pakistani authorities on Sunday arrested two men involved in a recent boat tragedy off the coast of Greece that killed at least five nationals, as part of an intensified crackdown on human smuggling networks, the Federal Investigation Agency (FIA) said.
The arrests come in the wake of a boat disaster last week near the Greek island of Gavdos, which highlighted the perilous journeys many migrants undertake, often driven by conflicts in the Middle East. In the case of Pakistani nationals, economic challenges push many young individuals to attempt dangerous crossings to Europe in search of better financial prospects.
The issue illegal immigrations to Europe came under greater scrutiny in the country last year when hundreds of migrants, including 262 Pakistanis, drowned after an overcrowded vessel capsized off the southwestern Greek coastal town of Pylos.
The FIA said it apprehended Muhammad Aslam and Saeed Ahmed in separate operations following directives from Prime Minister Shehbaz Sharif to target those facilitating illegal migration.
The Pakistani agency informed Aslam was part of an international human smuggling ring and was accused of orchestrating the ill-fated journey that saw Pakistani migrants taken to Libya before being put on a boat bound for Greece.
“Using advanced technology, Aslam was tracked and arrested in Gujranwala,” the FIA statement said, adding the second suspect was arrested in Gujrat district located in the eastern Punjab province and was accused of creating fake travel documents and charging large sums for his services.
The statement informed Aslam extorted Rs8.5 million ($30,660) from victims by promising safe passage to Europe.
The Pakistani premier called for enhanced cooperation with international agencies earlier this month, seeking swift action against human trafficking networks. He also instructed the FIA to compile a detailed report on migration-related incidents over the past year and implement an Integrated Border Management System (IBMS) to monitor and prevent illegal movement.
The FIA said in its statement it had formed special teams to track other suspects linked to human smuggling rings.
“We will use all available resources to arrest those playing with innocent lives,” Abdul Qadir Qamar, the director of the FIA’s Gujranwala zone, was quoted as saying in the statement.
Authorities have presented 174 human smuggling cases in court this year, with four convictions reported so far. The government has also decided to launch a public awareness campaign to discourage dangerous migration attempts.
“Concrete evidence will ensure the culprits face severe punishment,” Qamar added, emphasizing the government’s commitment to preventing such tragedies.
Pakistan government forms committee to negotiate with Imran Khan’s party amid growing polarization
- Development comes after Khan threatened civil disobedience in the country, seeking release of political prisoners
- Government acknowledges talks can help break the current impasse which has also impacted national economy
ISLAMABAD: The government on Sunday formed a committee to hold talks with the opposition Pakistan Tehreek-e-Insaf (PTI) party, state media reported, to discuss a range of issues causing political polarization that has also impacted the country’s fragile economy.
The move comes after PTI founder and former Prime Minister Imran Khan threatened to launch civil disobedience by urging overseas Pakistanis, a key support base for his party, to halt remittances if the government does not meet his demands, including the release of political prisoners, by Dec. 22.
Khan, who has been imprisoned for over a year on charges he claims are politically motivated, has also called for judicial commissions to investigate violent protests on May 9 last year and Nov. 26 this year, which the government says involved his party supporters.
“Prime Minister Shehbaz Sharif has formed a committee comprising government members,” state-owned Pakistan Television News reported. “This committee will hold negotiations with Pakistan Tehreek-e-Insaf.”
The formation of the government’s negotiating team followed a meeting between PTI Chairman Barrister Gohar Khan and National Assembly Speaker Sardar Ayaz Sadiq on Saturday evening in which Gohar requested the creation of a parliamentary committee to facilitate dialogue. Sadiq subsequently approached the Prime Minister, urging him to nominate representatives for the talks.
The government’s committee includes key figures from the ruling Pakistan Muslim League-Nawaz (PML-N), such as Deputy Prime Minister Ishaq Dar, Political Adviser Rana Sanaullah and Senator Irfan Siddiqui, alongside representatives from allied parties. PTI has already established its own negotiating team.
The development comes a day after Pakistan’s military announced prison sentences for 25 people involved in the May 9, 2023, protests, which PTI has demanded be investigated. The military said it had gathered “irrefutable evidence” against those prosecuted and reiterated its commitment to bringing the planners of the violence to justice.
The announcement has raised concerns among supporters of former Prime Minister Imran Khan, who faces charges of inciting attacks against the armed forces and may potentially be tried in a military court.
The country has remained gripped by political unrest and uncertainty since Khan’s ouster from power through a parliamentary no-confidence vote, which has also exacerbated Pakistan’s economic hardships.
Senior government representatives have recently acknowledged that negotiations could offer a pathway out of the current political impasse. However, they have cautioned that it is too early to determine which of PTI’s demands might be addressed.
Pakistan PM orders crackdown on tax evasion, calls for modernization of revenue collection system
- Pakistan’s tax-to-GDP ratio is among the lowest in the region, with government aiming to increase it to 13.5%
- Tax reforms are also part of the IMF recommendations, which led to approval of a $7 billion loan package this year
ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday directed authorities to take strict action against tax evasion and ensure non-compliance is addressed as part of his administration’s efforts to enhance revenue collection and modernize the tax system, according to the state media.
Chairing a meeting in Lahore, Sharif emphasized the need for incorporating advanced technology to improve the Federal Board of Revenue’s (FBR) performance.
“Improving the FBR’s performance through technology is the government’s top priority,” the Associated Press of Pakistan (APP) news agency quoted him as saying.
The prime minister called for the swift completion of the FBR’s value chain digitization and instructed the rapid implementation of video analytics in the cement and tobacco industries, sectors prone to tax underreporting.
He expressed optimism that digitization efforts would help recover billions of rupees for the national treasury.
The government has recently undertaken a series of tax measures, including expanding the tax base and targeting untaxed sectors.
Earlier this year, Finance Minister Muhammad Aurangzeb emphasized the need for everyone to pay their fair share, describing tax reforms as critical to breaking the cycle of external financial reliance.
Pakistan’s tax-to-GDP ratio remains among the lowest in the region, at just over nine percent, though the government aims to increase it to 13.5% in the coming years.
The Pakistani administration has also announced to launch a crackdown on affluent individuals not yet in the tax net, with the FBR tasked to identify and penalize evaders.
The tax reforms are also part of the International Monetary Fund’s recommendations, which led to the approval of a fresh $7 billion loan package for the country this year.
Pakistan vows zero tolerance for mistreatment of polio workers as year’s last vaccination drive ends
Pakistan vows zero tolerance for mistreatment of polio workers as year’s last vaccination drive ends
- Polio teams often face hostility in Pakistan, with militant groups targeting them and locals resisting their efforts
- Government promises to take strong action against cases of harassment or abuse directed at frontline workers
KARACHI: Pakistan’s government on Saturday said it would not tolerate the mistreatment of polio workers as the final vaccination campaign of the year to eradicate the disease concluded across much of the country amid a sharp increase in number of cases in 2024.
The weeklong nationwide vaccination drive, held Dec. 16-22, aimed to immunize 44 million children in 143 districts. Despite extensive efforts, the 2024 tally reached 64 cases this month.
Pakistan and Afghanistan remain the only two countries in the world where polio remains endemic. Regular door-to-door campaigns have been a cornerstone of Pakistan’s eradication strategy, but vaccination teams often face hostility, with militant groups targeting workers and local communities resisting efforts.
Earlier this week, authorities in Sindh arrested six people after a polio team was reportedly attacked by a tribal family in Karachi’s Qur’angi neighborhood.
“The government has adopted a zero-tolerance policy against actions targeting polio workers,” said Ayesha Raza Farooq, the prime minister’s focal person for polio eradication.
“Mistreatment of polio workers will not be tolerated,” she continued. “We are in contact with provincial authorities regarding incidents involving workers, and strict action will be taken against perpetrators.”
Farooq urged all provincial and district officials to take strong action against cases of harassment or abuse directed at frontline workers. She emphasized that protecting polio teams was critical to safeguarding children from the devastating effects of the disease.
The anti-polio campaign is yet to be carried out in Pakistan’s Balochistan province where officials announced a postponement of the vaccination drive until Dec. 30 due to a lack of preparedness.
The province has reported 26 cases this year, the highest in Pakistan, highlighting its vulnerability to the virus.
Farooq also appealed to communities to support and protect polio workers, calling them the backbone of the nation’s fight against polio.
“Ending polio is a national priority, and frontline workers are like our backbone [in this struggle],” she added.
China’s ADM Group to invest $350 million in Pakistan’s EV sector
- The South Asian country plans to convert 30 percent of all vehicles to electric power by 2030
- The Chinese firm will set up electric vehicle manufacturing plant, over 3,000 charging stations
ISLAMABAD: Chinese enterprise ADM Group has announced an investment of $350 million in Pakistan’s electric vehicle (EV) sector, Pakistani state media reported on Saturday.
As part of the initiative, the Chinese firm will establish more than 3,000 electric vehicle charging stations across the South Asian country, the Radio Pakistan broadcaster reported.
Of these 3,000 charging stations, 1,000 will be set up in Sindh, 1,500 in Punjab, and 750 in Khyber Pakhtunkhwa and Balochistan provinces.
“The ADM Group will allocate $250 million for the establishment of an electric vehicle manufacturing plant in Pakistan,” the report read.
The Chinese enterprise will provide $90 million for developing the necessary charging infrastructure, according to Pakistani state media.
The electric vehicles, which will be capable of traveling up to 300 kilometers on a single charge, are expected to help reduce carbon emissions and lessen the country’s dependence on conventional fuel sources.
Pakistan’s Privatization Minister Abdul Aleem Khan said in November that 30 percent of all vehicles in Pakistan would be converted to electric power by 2030 as the South Asian country takes step to combat air pollution and other climate change effects.
“Pakistan aims to convert 30 percent of its vehicles to electric by 2030,” Khan said as he addressed the “Transport and Digital Middle Corridor and Beyond” session at the UN COP29 summit in Baku.
“Significant steps are underway to support the widespread adoption of electric vehicles in Pakistan … the government is actively working on infrastructure development for EVs, including the installation of charging stations.”
Hybrid electric vehicle sales have more than doubled in Pakistan in the past year. BYD Pakistan, a partnership between China’s BYD and Pakistani car group Mega Motors, said in September up to 50 percent of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets.
Warren Buffett-backed Chinese electric vehicle giant BYD announced its entry into Pakistan in August, making the nation of 250 million people one of its newest markets.
Pakistani media reported in August that standards for EV charging stations had been drafted by the power ministry, with the government considering offering them affordable electricity.
Under the government’s New Energy Vehicle (NEV) policy announced last month, the government has introduced subsidies of Rs50,000 for electric motorcycles and Rs200,000 for three-wheelers like rickshaws, with a total allocation of Rs4 billion. These subsidies will be distributed through auctions. So far, two companies have been granted licenses, and 31 more applications are under review.
Additional initiatives include offering free electric bikes or scooters to high-achieving students and reducing duties on EV components to encourage local manufacturing. The government is also set to establish a New Energy Fund and a New Energy Vehicle Center to support these measures.
