In the fiscal year 2020–21, Pakistan Steel Mills (PSM), under state ownership, faced a significant financial setback, recording a staggering loss of Rs164.4 million.
The Auditor General of Pakistan (AGP) brought attention to the root causes behind this substantial financial downturn in its recently issued financial report for PSM.
Administrative negligence emerged as a primary factor contributing to the massive loss, with Rs164.4 million attributed to this oversight.
Furthermore, instances of theft exacerbated the financial strain, with stolen copper, brass, electric instruments, and cable resulting in a cumulative loss exceeding Rs6.49 million for the steel mills.
According to ARY News, the AGP’s report highlighted additional incidents of theft, including the disappearance of electricity poles, three high-tension (HT) wires of considerable value, a 132-KV transmission line, and tracks designated for freight trains.
The lapses in security arrangements by the PSM administration were underscored as a critical failure contributing to these losses.
Compounding the financial challenges, the report revealed that the PSM incurred a Rs5.62 million loss due to the unauthorised hiring of services from retired officers.
This improper utilisation of funds further strained the already precarious financial position of the state-owned entity.
Moreover, the PSM faced an additional financial setback of Rs4.33 million in terms of insurance services provided by a private company.
This multi-faceted financial downturn highlighted various areas where the PSM faced challenges, ranging from administrative oversights to security lapses and questionable financial decisions.