TIP HariPur Hazara Pakistan – Another white elephant close to bankruptcy
Islamabad (Daily TheNews / July 29, 2012) – Another state run organisation, Telephone Industry of Pakistan (TIP), is in serious financial trouble precisely on the pattern of Pakistan Steel Mills (PSM), ‘The News’ has learnt.
The documents available show the TIP’s existing fiscal health is deteriorating rapidly following consistent drop in sales and a substantial reduction in its production in the last four years.
“The major decline surfaced within 3-4 years with production dropping drastically and current sale hitting less than Rs70 million against the expenditure of Rs700 million a year,” said the sources.
To a question, they said that the production might be around 30 percent as compared to four years back but the expenditure had continued to grow with the passage of time.The TIP has updated the government about the present state of affairs in writing and it has also pleaded to a Senate panel for some prudent measures to match the sale and production with expenditure while utilising new technologies.
TIP industry, established in 1954, is a subordinate department of Ministry of Information Technology and Telecom, told the government about the massive shortfall of 90 percent in its existing spending and earnings.
The ministry, in its briefing to the Senate’s Functional Committee on Less Developed Areas, said the TIP needed at least Rs630 million a year to meet its current expenditure, otherwise, its liabilities would continue to pile up taking it to bankruptcy.
“At least Rs1.5 billion of revenue is required for break even to meet the expenditure. The TIP has a negative equity of Rs1.8 billion and accumulated loss of Rs2.6 billion,” the documents say. The TIP, the documents provide, has a total staff of 1,389 with 511 regular, 781 contractual and 99 daily wagers at present. Likewise it has a total 48 officers from BPS-17 to BPS-21.
Besides one Managing Director (BPS-21), two (BPS-20) are General Managers, 17 (BPS-19) are Deputy General Managers, 18 (BPS-18) are Deputy Managers and 11 Executives (BPS-17) who are presently working at its top hierarchy.
About TIP Haripur Hazara
TIP was established to meet the requirements of Telecommunication Switching Equipment of the country.
It’s aim is to plan, produce, install, test and commission the telephone exchanges and supply telephone instruments.
Beside telecommunication equipment, it is also producing a variety of other products like Containers Shells, Single Phase Energy Meters, Fire Alarm equipment & Drop Wire.
It is a huge complex having sufficient Technical know how and required production facilities to the maximum extent which can accommodate new projects / product