ISLAMABAD: The Pakistan Steel Mills has not been functioning for the last seven months due to suspension of gas supply over non-payment of outstanding bill of more than Rs 39 billion to Sui Southern Gas Company.
Ministry of Industries and Production revealed this in a written reply to National Assembly, adding that out of total payables, Rs 19.1 billion is principal amount till November 2015, whereas Rs 20.8 billion is late payment surcharge.
Natural gas bill for the month of December 2015 is Rs.72 million, whereas the payment surcharge of Rs799 million has been applicable after 21 January 2016 (due date).
The ministry confirmed that the production of mill was increased by the package of Rs18.50 billion. The plant was running at 6 percent in financial year 2013-14 and 1 percent in April, 2014 when a bailout of Rs.18.5 billion provided to revive the mill. The PSM had been lifted from 1 percent CAPU of April 2014 to 41 percent in March, 2015, the ministry said. It further stated that steel mill demanded Rs 9.30 billion for the supply of raw material.
The ministry said that a high-level meeting with the Minister for Petroleum and natural Resources, Privatization Commission chairman, SSGC chairman and CFO Pakistan, in July last year decided that supply should be restored and the mill may pay bills later, But SSGC did not implemented the decision.
