-Cabinet approves Pakistan Steel Mills privatization
By Uzma Zafar
ISLAMABAD: Prime Minister Imran Khan while chairing the Federal Cabinet meeting on Tuesday has directed strict action against all elements responsible for artificial shortage of petrol in the country.
The cabinet noted that the Oil and Gas Regulatory Authority (OGRA) and the Petroleum Division had legal authority to physically enter and inspect oil companies storage facilities. It directed the Petroleum Ministry to form joint raiding teams comprising representatives of the Petroleum Division, OGRA, Federal Investigation Agency (FIA) and district administrations, which would inspect all petrol depots/storage, and have all authority to enter any site.
The cabinet decided that anyone found involved in hoarding would face full force of law, including arrest and forced release of such stores. Any company found not maintaining the mandatory stocks and supply to its outlets, as per their license, would face punitive actions, including suspension and cancellation of license and heavy fines.
The prime minister directed that the Petroleum Division and OGRA to take all actions necessary to ensure regular supplies within 48-72 hours.
The Ministry of Energy informed the cabinet that in June 2019 total petrol supplies were 650,000 metric tons while 850,000 metric tons supplies were arranged for June 2020.
The cabinet urged the public not to engage in panic buying as the stocks that were being hoarded would be identified and ensured to be available in the market and action taken against hoarders.
PM Imran Khan directed the minister for petroleum and OGRA to ensure that every oil marketing company (OMC) maintains 21 days stock to meet its license conditions.
Prime Minister Imran is chairing a session of the federal cabinet on Tuesday to review countrywide situation and discuss important national matters such as the upcoming budget and measures against the coronavirus.
According to sources, the prime minister took notice of the ‘artificial’ scarcity of petroleum products in the country, ordering strict action against those behind it.
Sources said that the cabinet ordered the petroleum division to form teams for conducting raids. As per the law, Oil and Gas Regulatory Authority and petroleum division officials can inspect stores of the oil companies, sources quoted the cabinet members as saying.
“OGRA kept on sleeping, while long queues formed outside the petrol pumps,” said federal minister Murad Saeed.
Meanwhile, Federal Minister for Aviation Ghulam Sarwar asked if there was only a stock left for seven days in the entire country of petroleum products, to which Special Assistant to PM Nadeem Babar responded that at this time 215,000 metric tonnes of petrol is in reserve.
Federal Minister for Energy Omar Ayub said that some companies stopped buying of petrol after an increase of $12 in the global market. “The oil companies which ended the stock, we are cancelling their licenses,” said the minister.
Meanwhile, sources informed that the cabinet also approved action against those named in the sugar crisis inquiry report.
The federal cabinet will also review the decisions taken by the Economic Coordination Committee on June 3, according to its agenda. The ECC had recommended to let go of 9,350 employees of the Pakistan Steel Mills. The cabinet will take a decision on the matter today.
Earlier this week, it was reported that petrol pumps spread over the country have been facing a shortage of fuel supply, adding to the difficulties of the public as well as transporters. It was learnt that those stations with petrol, are charging citizens double prices.
Cabinet meeting held under the chair of Imran Khan has concluded in Islamabad on Tuesday where principal decision to privatise Pakistan Steel Mills has been taken, media reported.
The federal cabinet has formally agreed upon Economic Coordination Committee (ECC) suggestion to privatise the mega firm. The federal cabinet will go ahead with the privitization and provide a golden handshake to its employees.
The Prime Minister, Imran Khan has issued special directions saying that although national interest is of primary importance but mill employees must also be compensated in the best way possible.
A key member of the provincial cabinet and close aide to chief minister, Saeed Ghani also vowed on June 7 to protect rights of over 9,000 PSM workers, who were being laid off under a proposed plan. “We are against the retrenchment of 9,500 workers of Steel Mill and the PPP will protect these employees at every forum,” Sindh Education Minister Saeed Ghani told a press conference along with labour leaders Shamshad Qureshi and Habib Junaidi.
“The government is eyeing the land of steel mills worth billions of rupees. But everyone should be clear about it. This land belongs to the Sindh government and we will not allow them to take this land. The Sindh government had in the past raised its voice against the privatisation and we will not remain silent this time as well. We are with workers not with capitalists.”
