KARACHI: Spokesman, Pakistan Steel, Shazim Akhtar stated that the production of Pakistan Steel has been elevated from 1.4 per cent in April 2014 to 30 per cent of 1.1 million tons in December-2014 with the help of Financial Restructuring Package of Rs 18.5 billion.
With the current package the production capacity will reach break even point that is 77 per cent and in order to sustain and boost the production to 100 per cent, an additional amount of Rs 13 billion has been requested from the government, said a statement on Tuesday.
Government of Pakistan and Steel Mill have Rs 8.5 billion in shape of amount for opening of LCs (5bn), finished products 1.5 billion and Raw Material 2 billion approximately.
It is imperative to mention here that during the last six years the plant has not undergone any capital repair which is the need of the day.
Instead of all issues and condition of the plant management is confident and bound to fulfill its commitment and achieve 77 per cent production capacity.
It is worth mentioning that this amount will not only help achieving 100 per cent production, but will also add to asset building of this national enterprise.
Moreover, Rs 13 billion will be repaid in couple of years.
It is pertinent to mention that 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.
The spokesman further added that Rs 4.5 billion have been requested for payment of 3 months’ salary and utility bills as due to late receipt of iron ore (22nd September 2014) the target was also pushed by 3 months that is April 2015 and this amount will also be used to pay salary during this extended period.
Moreover, Rs 23 billion including Rs 4.5 billion requested and received amount of Rs 18.5 billion will be repaid in the form of reduced loss by next year.