Islamabad, The Senate Standing Committee on Industries and Production, chaired by Senator Khalida Ateeb, convened at Parliament House to evaluate the performance and challenges of key industrial sectors in Pakistan. The committee focused on the contribution of Small and Medium Enterprises (SMEs) to the economy and the ongoing issues surrounding Pakistan Steel Mills (PSM).
According to Senate of Pakistan, the committee discussed the significant role of SMEs, with officials reporting that there are approximately 5.2 million SMEs in Pakistan, contributing about 40% to the GDP and 30% to exports. It was highlighted that the economic return on investment in the Small and Medium Enterprise Development Authority (SMEDA) was significant, with Rs. 9.85 created for each rupee spent. The majority of these SMEs are located in Punjab Province. Concerns were raised about the operational challenges of 36 Common Facility Centers across the country, established through PSDP funding, now halted due to lack of funds. The committee recommended exploring public-private partnerships to utilize these centers effectively.
Another critical issue addressed was the status of Pakistan Steel Mills. Officials revealed that PSM has approved a Temporary Relief Allowance for its employees but could not provide details regarding items stolen over the last decade and their market value. The committee demanded these details in their next meeting. Officials also reported that PSM incurs annual losses of Rs. 30 billion, with maintenance costs of Rs. 1 billion for common batteries. The committee urged the ministry to decide on the future of PSM to prevent further losses.
The meeting also reviewed the State Engineering Corporation’s (SEC) role and functions. Established in 1973, the SEC once oversaw 12 units but now only manages the Pakistan Engineering Company in Lahore following the privatization of 11 others. The committee learned that SEC’s current role is mainly as a liaison between the Ministry of Industries and Production, Privatization Commission, and other government entities.
Senators Fida Muhammad, Faisal Saleem Rehman, Saifullah Sarwar Khan Nyazee, Zeeshan Khanzada, and Mohammad Abdul Qadir attended the meeting, along with Secretary for Industries and Production Rashid Mahmood Langrial and other senior officials.