• Saturday, May 25, 2019

Handing over of Pakistan Machine Tools Factory (PMTF) to the Strategic Plans Division

Discussion in 'Pakistan Defence & Industry' started by ghazi52, Mar 13, 2019.

  1. ghazi52

    ghazi52 ELITE MEMBER

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    Govt approves machine tool factory handing over of Pakistan Machine Tools Factory (PMTF) to the Strategic Plans Division

    March 12, 2019

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    Heavy mortar 120 mm (MO-120AM-50 M67 by PMTF (Pakistan Machine Tool Factory).


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    Recoilless rifle 106 mm by PMTF (Pakistan Machine Tool Factory).


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    40mm RPG-7, produced by PMTF (Pakistan Machine Tool Factory).


    The Ministry of Industries told the ECC meeting that the two proposals of capital injection and privatisation to revive PMTF had been tried in the past, but to no avail. PHOTO: FILE

    ISLAMABAD: The government has approved the handing over of Pakistan Machine Tools Factory (PMTF) to the Strategic Plans Division in an effort to turn around the ailing state-owned tools manufacturing unit.

    PMTF, a unit of State Engineering Corporation, commenced operation in 1972. Its capabilities include manufacturing of conventional machines, components of automotive vehicles and a range of defence-related equipment.

    Sales of the company, which peaked at Rs1.19 billion in financial year 2008-09, have been on the wane for years. A host of factors like global recession, lack of balancing, modernisation and replacement, and uncertainty over privatisation of the company contributed to its decline.

    The government in 2011 approved an increase in PMTF’s credit limit by Rs1 billion, but it could not take the company out of distress. PMTF had potential orders of Rs3.94 billion, but due to shortage of raw material and other inputs, it was not in a position to execute the orders.

    The Ministry of Industries and Production informed the Economic Coordination Committee (ECC) of the cabinet, in a meeting held last month, that PMTF’s assets as on June 30, 2018 were worth Rs6.92 billion and its liabilities stood at Rs 5.59 billion. The liabilities included overdraft of Rs1.108 billion, accrued markup of Rs 700 million and outstanding arrears of Rs865 million in salary and retirement benefits.

    The ministry proposed three options for PMTF’s revival which included injection of Rs3.94 billion by the government comprising a soft loan of Rs2.105 billion and grant of Rs 1.84 billion. The company management has projected a pre-tax profit of Rs 195 million by financial year 2022-23.

    In the second option, the Ministry of Industries has proposed privatisation of PMTF as after excluding liabilities it had assets of Rs1.337 billion. The ministry also proposed its handing over to the Special Projects Directorate without liabilities.

    It told the ECC meeting that the two proposals of capital injection and privatisation to revive the factory had been tried in the past, but to no avail.

    It was pointed out that the Strategic Plans Division had a track record of turning around ailing units and Heavy Mechanical Complex (HMC) was an example. Therefore, the ECC may consider the handing over of PMTF to the division with the condition that the company’s land would not be put to any other use and the share of production for civilian use would not be reduced.

    A relief of Rs 833 million may be allowed immediately to avoid any law and order situation, it was also suggested in the meeting.

    The ECC approved the PMTF’s handover to the Strategic Plans Division without liabilities with the condition that its land would not be put to any other use. It directed the Ministry of Industries to submit details of the company’s assets and properties across the country along with their market worth.

    The ECC also directed the ministry to present a plan for the disposal of surplus properties for its consideration.
     
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  2. ghazi52

    ghazi52 ELITE MEMBER

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    COMPANY PROFILE

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    Pakistan Machine Tool Factory (Pvt) Ltd. (PMTF) is a precision engineering goods manufacturing enterprise in Pakistan, established in technical collaboration with M/s. Oerlikon Buhrle & Co. of Switzerland who are the world's renowned manufacturers of Machine Tools. The factory came into regular production in 1971.

    It is located Off National Highway, about 35 Km from Karachi City near Landhi Industrial Estate and spread over an area of 226 acres out of which 17 acres are occupied by works. The factory employs about 1900 engineers, technician, workers and other service staff. The layout of the factory is according to the best European standards. This factory is a unit of State Engineering Corporation of Pakistan and is engaged in the production of Machine Tools, Automotive Transmissions and Axles Components, Gears for Locomotives, Pressure Die Cast parts and other products.

    PMTF has rich experience in Designing and Manufacturing of precision engineering goods and its facilities include Designing, Machining, Forging, Heat Treatment, Assembly, Die Casting etc.

    PMTF is certified to ISO 9001.Quality Assurance System and has excellent Quality Control and Testing facilities to meet the international quality requirement.
     
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  3. ghazi52

    ghazi52 ELITE MEMBER

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    [​IMG]


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    Last edited: Mar 13, 2019
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  4. ali_raza

    ali_raza SENIOR MEMBER

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    gems in dust
     
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  5. Samlee

    Samlee SENIOR MEMBER

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    I Would've Privatized It
     
  6. BERKEKHAN2

    BERKEKHAN2 BANNED

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    First time since I joined pdf I am able to see pictures about by you
     
  7. Sulman Badshah

    Sulman Badshah STAFF

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    Don't think so it is a good decision .... Its land is worth billions and should be privatized it .. If govt want to run it
     
  8. AsifIjaz

    AsifIjaz FULL MEMBER

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    Best way forward would be to sell uts 30 percent shares with management control..
    Give 10 percent more shares if the new investor upgrades the facility by bringing in new tools and machinery.
    Win win situation for both
     
  9. incognito1000

    incognito1000 FULL MEMBER

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    Best solution is privatize it, turn it into a company and sell shares to local Pakistani investors. Letting it survive on its own in free market will hopefully get rid of the inefficiencies and improve productivity. Military should stay away from business and focus on fighting & winning wars.

    Then again, Pakistani companies are not known for improving productivity and efficiency. Neither do they invest in the latest technology to improve these things. Pakistani attitude is to let things continue as they have been for 30 years, no forward thinking.
     
  10. Mamadouso

    Mamadouso FULL MEMBER

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    Why is Pakistani mindset like that? I like Pakistani people but I will admit they are too casual and need to become battle hardened and more shrewd in business like their military.
     
  11. incognito1000

    incognito1000 FULL MEMBER

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    Something is terribly wrong if a country of 200+ million people exports $25 billion and a few million Pakistani expats working abroad send back remittances of $20 billion. That figure alone should show you a big gap in productivity!
     
    Last edited: Mar 14, 2019
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  12. crankthatskunk

    crankthatskunk FULL MEMBER

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    You are talking to @Mamadouso , whose country's export is mainly petroleum products.
    Despite having oil their electric production is roughly between 3500 to 4000 megawatts.
    Where the road networks are diabolical. In Lagos in most of the city apart from the Islands, the road work is what we call dirt roads. The city has open sewerage. The corruption is rampant.
    This is despite having a $50 bn export of mostly oil. Imagine if we have that oil, we would have been miles ahead.
    Shame is that the Nigerians still think we are behind in progress. Despite all indices apart from export of oil and use of mobile (slightly higher in Nigeria) are way negative for Nigeria compare to Pakistan.
    They are saved by oil export otherwise they would face colossal problems.
    Driving is a hazzard you want to avoid at all cost.
    Lagos Islands are linked with the Mainland by two Bridges, you can use the 3rd if you want to go around.
    The result are nightmare journeys for the workers, who mostly live in poor mainland and work in upper class Islands. Believe you me it is no fun traveling in Lagos most of the time.
    I know I have been there.
     
  13. fitpOsitive

    fitpOsitive SENIOR MEMBER

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    Outclass. What a good new that was.
    Steel mil should also become part of HMC and should produce parts for all mechanical defense industries.
     
  14. Mamadouso

    Mamadouso FULL MEMBER

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    Yes you are right and state of Nigeria is bad, I have not lived there for decades and it is sad to see it hasn’t improved.

    But you must remember to compare with your peers, and in that respect West Africa is in very similar situation. The sad thing for Pak is that it was better in many indices 20-30 years ago (education, balance of trade, manufacturing etc) and it has gone backward which is sad to see. And one reason I see in Pak people I have met in Europe - they bemoan the lack of enterprise in their country and also lack of innovation.

    I think Pak can be a beacon for many Muslim around world that is why I hope for improvement in its economic realm
     
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  15. GIANTsasquatch

    GIANTsasquatch SENIOR MEMBER

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    It wasn't any good 20 years ago lol. 90s was a mess....