Islamabad

Pakistan Steel Mills is not functioning for the last seven months, as the gas supply was suspended due to non-payment of outstanding bill of over Rs 39 billion to Sui Southern Gas Company.

Out of total payables, Rs 19.1 billion is principal amount till November 2015, whereas 20.8 billion is late payment surcharge, Ministry of Industries and Production said in a written reply to national Assembly.

Natural gas bill for the month of December 2015 is Rs.72 million, whereas the payment surcharge of Rs.799 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 billions for the supply of raw material.

The Ministry said that a high level meeting with the Minister for Petroleum and natural Resources, Chairman Privatization Commission, Chairman SSGC 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.