ISLAMABAD: Russia is ready to renovate Pakistan Steel Mills, however, the Pakistani government should decide whether to modernise the PSM or privatise it.
This was stated by Russian Ambassador to Pakistan Alexey Y Dedov, while talking to media. He said that in case of its privatisation, the decision would be taken keeping in view its price and other aspects because then it would be a commercial deal.
Pakistan Steel Mills is the largest industrial mega corporation with a production capacity of 1-5 million tons of steel and iron foundries.
On the question of constructing floating Liquefied Natural Gas (LNG) terminal at Port Qasim in Karachi and gas pipeline, he said “these projects are also in the sphere of our interest and we are already participating in it. So far there are some practical steps ahead in term of our negotiations and the process has already been launched.”
On the issue of boosting trade between the two countries, he said there still exists a very old problem of ‘unsettled mutual debt obligation’ of $120 million pending resolution since 1990s.
Meanwhile, Pakistan Steel Mills (PSM) has made its Formed Section plant active after being dormant for more than 20 years. The last time it provided W-Section or Guard Rail for Motorway Project from Lahore to Islamabad. The subject plant has capacity of producing 100,000MTN of Formed Sections in various shapes and sizes.
Formed Sections are used for manufacturing light weight automobile and tractors. They reduce the mass of the structure hence fuel efficient cars and tractors are made possible. Formed Sections increase load-lifting capacity and decrease service expenditure per ton/kilometre of run.
The government recently bailout package of Rs18.5 billion has made it possible to maintain continuous supply of best quality raw material, which in turn has made the production of new products possible.
