ISLAMABAD: The Supreme Court (SC) on Tuesday took strong exception to the plight of the state-owned Pakistan Steel Mills (PSM) and sought a comprehensive report on its revival and privatisation plan.
A three-member SC bench, headed by Chief Justice Gulzar Ahmed, and comprising Justice Ijazul Ahsen and Justice Mazahir Ali Akbar Naqvi, heard a case regarding the promotion of the PSM employees.
The court directed secretaries, ministries of Industries and Privatisation, to ensure their presence on the next date of hearing, along with a comprehensive report about the fate of the state-owned entity, its revival plan as well as steps being taken to resolve the issues facing the mills.
The court also appointed Rashid A Rizivi, counsel for one of the petitioner workers of the mills to mediate between the employees facing problems and the management. The court directed Rizvi to sit with the employees’ representatives including CBA and enter into an amicable settlement with the management to resolve the issues of its workers.
The court directed the secretaries, Industries and Privatisation, to submit a comprehensive report on the revival plan of the mills within two weeks. Earlier, Federal Minister for Privatisation Muhammad Mian Soomro, Federal Minister for Planning and Development Asad Umar, secretaries, ministries of Industries and Privatisation, counsel for the PSM as well as counsel for CBA and other workers of the mills appeared before the court.
The CJ expressed grave concern over the non-serious attitude of the Ministry of Industries as well as Ministry of Privatisation. “Why you are not serious in running the mills and why should not the money be recovered from you,” the CJ asked the two secretaries.
“If you are not willing to do your job, you should go home and enable other competent people to seriously think about the revival of the asset of Pakistan, the Pakistan Steels Mills.” The CJ observed that Karachi Shipyard, Heavy Mechanical Complex and Steel Mills were non-functional, while the employees would "sell all the remains of the mills and retire.
“You are not even able to earn a single penny,” the CJP continued while addressing the officials of the ministries. “Even the Industries secretary is unaware of PSM facts, and whatever he knew had forgotten now,” the CJP added.
Justice Ijazul Ahsen observed that the Steel Mills had a liability of Rs400 billion, while Rs20 million is its daily expenditure. Justice Mazahir Ali Aqbar Naqvi observed that even the Industries secretary did not know anything on the last hearing except one word.
“You come to your luxury office at 9am and then leave at 4pm, but what’s progress of work,” the CJP asked the officials, adding that there were 3,700 workers with 400 officers drawing their salaries, but the Mills is not functioning. Send them home while your chairman is roaming abroad,” the CJP remarked. “The government writ is not being followed,” the CJP remarked.
The PSM counsel, however, submitted that there were 40 officers and 40 workers. “Whatever you are saying, it’s [enough] for closing the Mills,” Justice Mazahir told the counsel. “Give us the plan as to how you are going to revive the mills,” the judge asked the counsel.
“Give us the details about the downstream plan and how many projects [will run],” the CJP asked secretary Industries. “I don’t know the exact figure, but it may be 40 projects,” Secretary Industries replied.
“If you don’t know then why you came here,” Justcie Naqvi asked the official. The CJ then called Asad Umar, minister for Planning and Development, to the rostrum and asked if he knew anything.
Asad Umar said: “I am not sure why I have been summoned”, but added that Dr Hafeez A Shaikh was looking after the PSM affairs. He informed the court that the decision to privatise the state entity was taken some four months back. He said the mills would be privatised through public private ownership, but the real ownership would rest with the government.
Privatisation Minister Muhammad Mian Soomro told the court that open bidding would take place in September or October, with the mills' assets worth $100 million. “Give us a complete picture that it will be privatised in a transparent manner and in accordance with the law, and also tell us about the timeline as well,” Justice Ijazul Ahsen asked the minister.
Soomro asked the court whether the mills should not be privatised. The CJ told him that the court was not halting the privatisation process; however, the government should keep the court decision in mind.
The CJ observed that the shipyard had been closed, to which Asad Umar said it was not closed, but being expanded, adding that the government had approved the plan for its expansion.
Rashid A Rizvi told the court that he had also filed an application on behalf of CBA of Pak Steel Mills, to which the CJ asked him that another counsel was also representing the CBA. The CJP said that the CBA was the real organisation of workers, adding that when the mills was closed, then how the outstanding dues of the workers could be paid.
Counsel for the PSM told the court that according to Chinese experts, some $500 million would be required for producing 11 million tons of steel. Qazi Ahmed Naeem Qurashi, counsel for the CBA, told the court that workers had called off their strike.
Justice Ijazul Ahsen remarked said that when the mills was not running, then how the workers could go on strike. “They are giving dharnas, not on strike,” Justice Ahsen observed. Counsel for Steel Mills Shahid Saleem Bajwa said they could restore only 70 to 80 per cent employees; half of them from finance side.
