Pakistan Steel Closure Opposed by Board of Directors: Urgent Letter to Top Officials
Karachi: The Board of Directors of Pakistan Steel has formally objected to the government's decision to shut down Pakistan Steel, deeming the move hasty and not in the national interest. In a strongly worded letter, Chairman Aamir Mumtaz urged the government to reconsider.
The letter, sent to key government figures including the President, Prime Minister, Finance Minister, and other senior officials, expressed the Board's disapproval of the Cabinet's decision. "The closure of Pakistan Steel lacks transparency and is ill-advised," wrote Mumtaz, highlighting the potential economic and social repercussions of such a decision.
Mumtaz emphasized that the Board, stakeholders, and industry experts were not consulted before the decision was made. The letter stressed that closing the steel mill would exacerbate unemployment and frustration among the populace, and could lead to misuse of the facility's vast land assets.
"The people of Pakistan and industry stakeholders are calling for the revival, not the closure, of Pakistan Steel," Mumtaz stated. He criticized the neglect of the Board's recommendations for reviving the mill and underscored the necessity of maintaining large-scale manufacturing capacities.
Addressing the financial aspect, the Chairman pointed out that 90% of Pakistan Steel's losses stem from finance charges on liabilities, not operational costs. He argued that the government should focus on settling these liabilities and investing in the mill's rehabilitation instead of shutting it down.
The letter concluded with a call for a collaborative approach involving government allies, industry experts, and employees to develop a sustainable plan for Pakistan Steel's future. "The government must justify how closing such a critical manufacturing facility aligns with national interests when large-scale manufacturing has already fallen behind," Mumtaz asserted.
The Board's firm stance reflects a broader concern over the lack of transparency and consultation in the decision-making process and highlights the urgent need for a revised strategy to safeguard Pakistan Steel's legacy and potential.
