Two cargo vessels, MV Alam Murni and MV Eastern Star, arrived at Pakistan Steel Jetty, Port Qasim last week.
MV Alam Murni carrying 50,000 metric tonnes of iron ore of Brazialian origin is currently discharging the cargo and Vessel MV Eastern carrying 23,000 metric tonnes of iron ore is at the outer, said Shazim Akhtar, spokesman. With the arrival of latest ships the total quantity of raw materials stock has increased to 150,000 metric tonnes net “coal” and 100,000 MTN of iron ore (lump/fine). The Pakistan Steel Management is confident that with the arrival of the latest ships the production and capacity utilization CAPU will further increase helping to achieve the targets set by the government.
“From the bailout package of Rs 18.5 billion provided by the government, the fund allocated for raw material amounting Rs 9 billion was utilized accordingly and the material of Rs 9.4 billion is still available in our inventory, either in the form of raw material or in the form of steel slabs/finished products. Finished products of PSM worth billions of rupees are available for sale but very cheap imported material heavily dumped in the market is affecting their disposal.” The remaining amount of bailout package mostly consumed for three months prior salaries and utility bills (gas, electricity, water and fuel) and old liabilities of spares, stores procured and one billion against gratuity and provident fund liabilities while only six months future salaries amounting rupees three billion were provided till break-even is achieved. The present management by continuous efforts of its entire workforce has been able to bring back a literally closed mill into operation which achieved maximum production capacity of 65% in the month of March 2015 which was 1.4% before bailout package in April 2014, despite delay in the receipt of funds as approved. It is mentioned that an average CAPU for the current financial year stands at 25% despite frequent breakdown of Electricity, Low Gas Pressure and shortage of water supply besides four-month delay in receipt of funds/materials.
PSM management is extremely thankful to the Government of Pakistan, especially the Ministry of Finance, the Privatization Commission, the Ministry of Industries and Production and related organisations such as FBR for their positive role in the revival of Pakistan Steel Mills.
Source: Daily Times
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