The Treasury informed the upper house of parliament on Friday that Pakistani Steel Mills (PSM) suffered an aggregate loss and liability of Rs 67.1 billion from June 30 to December 31, 2020.
“The PSM suffered an aggregate loss and liability of 67.1 billion rupees from June 30 to December 31, 2020,” Minister of State for Parliamentary Affairs Ali Muhammad Khan replied to a question during Question Time. the session of the Senate.
Citing further details about the state, the minister said the main reasons for the loss of Rs 8.247 billion from July 2020 to December 2020 were “the periodic cost, depreciation expense and mark-up accumulated on bank and government loans “.
Read Performance agreements – a new paradigm
During the above state period, he added that the federal government released an amount of 11.441 billion rupees for the payment of pension contributions to employees who filed petitions with the Sindh High Court. (SHC).
Khan said an amount of Rs 11.680 billion has also been released for retired non-claimants until May 18, 2020, as per the CHS order. The federal government has also released a value of 11.013 billion rupees for the payment of statutory contributions to dismissed employees, he added.
In addition, he added that an amount of 1.961 billion rupees for the net salary of PSM employees from July to December 2020 has also been released by the government. “All these funds released by the Pakistani government were incorporated as loans in the PSM’s books of accounts, which increased the current liabilities by 36.094 billion rupees between July 2020 and December 2020,” he said. .
“In addition, a remarkable increase in total liabilities during the period was caused by the increase in deferred liability of Rs 30.202 billion due to deferred tax recognized on excess over revaluation of PSM assets.” , did he declare.
The minister said the PSM was a profitable organization until 2008. However, he claimed that it suffered losses during the tenure of the Pakistan People’s Party (PPP) and was completely shut down in 2016 by the government of Pakistani Muslim League Nawaz (PML-N).
“The previous governments of the PPP and the PML-N are both responsible for the ruin of this national institution,” Khan said.
Amid the state of these institutions, the Pakistani economy ran into a problem on Wednesday as Pakistani stocks collapsed and the rupee sagged to an all-time high after US senators presented a draft bill to investigate Islamabad’s alleged role in the Taliban takeover of Afghanistan.
Read Roadshow organized to relaunch the PSM
The benchmark KSE-100 index plunged the most since March 2020. The rupee weakened 0.3% to close at a record high of 170.48 per dollar, according to central bank data.
“Investors are worried about the likelihood of sanctions against Pakistan after the bill in the US Senate,” Adnan Khan, head of international sales at Intermarket Securities Ltd, of Karachi, told Bloomberg.
(WITH PRESS OFFICE ENTRY)