Ishaq Dar first provided bail out packages for PSM through the ECC. Now he is once again planning on paying more than Rs480 million through a special five-member committee that he has constituted. This is the same Ishaq Dar who had requested help from the public to help save Pakistan 500 million per annum to balance his budget.
The PSM has outstanding liabilities of Rs114 billion and eats up more than Rs500 million every year, on account of salaries. Despite this, the company workers have failed to do repair and maintenance of its machinery for the past six years. The company is already overstaffed and its employees have very high perks and privileges.
If the Government of Pakistan is finding it difficult to sell PSM through privatisation, or to even reduce staff through downsizing, the best solution will be to declare the company bankrupt and close it down. It is not producing any products for Pakistan or providing any benefit to the country. By closing it down, the country will save more than Rs500 million.
The assets of the company can be sold out to repay its liabilities or the entire company can be easily privatised once the corrupt staff are kicked out and the company costs for salaries and perks go away.
ENGR SHAHRYAR KHAN BASEER
Peshawar
