Federal Minister for Industries and Production Liaquat Ali Jatoi said on Thursday that Pakistan Steel's production capacity will be increased beyond 3 million tons per annum within next three years from the present 1.1 million tones.
Later, he said, the capacity would be enhanced further to meet the increasing domestic iron and steel demand, which at present is more than 4 million tones.
Strengthening of the housing sector was the main objective of the government policy, he said.
"We want to provide consumers quality iron and steel at the lowest prices beyond their expectation," he asserted while speaking at a ceremony of Pakistan Steel Mills at its Head Office.
During the ceremony, chairman Pakistan Steel Lieutenant General Abdul Qayyum Khan and Managing Director of a European firm, M/s Corus Consultancy, Rod Jones signed a contract.
M/s Corus Consultancy would assess and evaluate the techno-commercial offers for revamping and expansion of Pakistan Steel and give their recommendations to finalise the expansion plan.
Federal Minister for Industries and Production said the planned expansion would cost around $1 billion and create 7,000 to 8,000 jobs. He noted that Pakistan Steel had earned more than Rs 6 billion profit during 2003-04 and hoped that it would soon become self-sufficient in finance.
"The PS plans to enhance its production capacity to 1.5 million tons from its own resources," he said. However, for financing the expansion to 3 million tons negotiations are in progress with China and Russia to seek attractive credit line, soft-term loan and optimum timeframe.
Besides expansion, he said it was very imperative to take up revamping, repair and maintenance of the plants, equipment and machinery to maintain optimum compatibility of the old and new equipment and machinery.
He said the government wanted to take benefit from all the countries offering technology and finances in this regard. "Our doors are open to all if any one wants to contribute in the expansion," he remarked.
Jatoi said that all the organisations under his ministry were operating in profit and all this was because of the wise policies initiated by the President General Pervez Musharraf. These would be continued in future, he added.
He said Pakistan had achieved record industrial growth of 17.1 percent during 2003-04.
He listed various mega projects in progress that included another Steel Mill to be established by Saudi Group Al-Taufique near Pakistan Steel at the cost of $60 million, and a Textile City and Garments City in Port Qasim industrial area which would bring additional investment of $2.5 billion.
Thousands of job opportunities would be created through these projects, he said.
Earlier, Federal Minister witnessed the contract signing ceremony, which was attended by diplomats from various countries, businessmen, downstream industry executives, leading bankers, top suppliers, leading manufacturers, dealers and senior officers of Pakistan Steel.
He, on the occasion also handed over a cheque of Rs 647 million to President of Habib Bank Limited Zakir Mehmood as second instalment of the bridge loan facility. Pakistan Steel acquired a loan of Rs 2.5 billion from HBL last year as part of bridge financing.
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