KARACHI: Due to the federal government’s Rs18.5 billion bailout package (Financial Restructuring Package), the Pakistan Steel Mills production has been increased from 1.4 per cent in April 2014 to 30 per cent of 1.1 million tons in December-2014.
According to a PSM spokesman, the Mills has Rs8.5 billion in shape of amount for opening of LC’s (5b), finished products Rs1.5 billion and Raw Material of Rs2 billion approximately. He said that with the current package the production capacity will be reached to breakeven point i.e. 77pc and in order to sustain and boost the production to 100pc i.e. 1.1 million tons an additional amount of Rs13 billion has been requested from Government of Pakistan.
The spokesman pointed out that during the last six (6) years the plant has not undergone any capital repair which is the need of the day. Instead of all issues and condition, the plant management is confident and bound to fulfil its commitment and achieve 77pc production capacity. It is worth mentioning that this amount will not only help achieving 100pc production, but will also add to asset building of this national enterprise. Moreover, Rs13 billion will be repaid in couple of years.
He said with the help of recent Financial Restructuring Package of Rs18.5 billion from GoP the loss of Pakistan Steel Mill has been reduced by Rs9 billion and next year it will further be reduced by Rs.20 billion. In view thereof Rs18.5 billion and additional Rs4.5 billion will be paid back in the next two years.
