Dilemma of PSM

The government is apparently under a lot of pressure ever
since it announced to terminate services of 9,300 employees of the moribund Pakistan Steel Mills with employees lodging strong protests, opposition making a hue and cry and the top court set to hear the case. Federal Industries Minister Hammad Azhar has defended the government’s decision saying revamping was necessary to revive production there.
There is an unfortunate tendency of politicizing purely economic issues and that is why problems and challenges linger on for years and decades. Pakistan Steel Mills is in trouble since long despite the fact that there was an increase in the demand of steel in the country. Various studies and analyses have pointed out that it is an issue of bad management, non-professional running, unnecessary induction of manpower on a political basis and corruption. This is borne out by the fact that the mills ran on full capacity and earned profit when it was headed by honest, hardworking and professional leadership. What the opposition is claiming these days was also the viewpoint of the then opposition (and now ruling party) as its leaders repeatedly claimed that instead of resorting to entrenchment of the employees they would (if came to power) make the institution profitable through reforms. Regrettably, instead of adopting the course of reforms, the present Government too is inclined to privatize the mills, an option opposed in the past. Why the government has not been able to reform and revive the institution during the past two years despite bright prospects of its revival and plans offered both by China and Russia to help in the process? As for termination of services of the employees is concerned, the decision is understandable as the institution is closed and the government is not expected to pay salaries for a non-functioning unit. However, only redundant, unnecessary and those recruited on the basis of political connections should be offered golden handshake and others retained if the government really has a plan for its revival with the help of the private sector as has been claimed by the Minister.