our staff Reporter

karachi

Pakistan Steel Mills production has been elevated from 1.4pc in April 2014 to 30pc of 1.1 million tons in December-2014 with the help of Financial Restructuring Package of Rs.18.5 billion given by the Government of Pakistan.

A spokesman for the PSM said the Mills has Rs.8.5 billion in shape of amount for opening of LC’s (5b), finished products Ea1.5 billion and Raw Material of Rs 2 billion approximately. He further stated 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 Rs.13 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 fulfill 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, Rs.13 billion will be repaid in couple of years.

He said with the help of recent Financial Restructuring Package of Rs.18.5 billion from GoP the loss of Pakistan Steel Mill has been reduced by Rs.9 billion and next year it will further be reduced by Rs.20 billion. In view thereof Rs.18.5 billion and additional Rs.4.5 billion will be paid back in the next two years.