Break even point soon: PSM production capacity to grow to 77 percent by April-end, claims CEO

Chief Executive Officer, Pakistan Steel Mill (PSM), Major General Zaheer Ahmed Khan (Retd) has claimed that the production capacity is expected to escalate to 77 percent by the end of April 2015, which would be a break-even point, nullifying the losses occurring to the mills.
Speaking at the meeting of Karachi Chamber of Commerce and Industry (KCCI), he said the production capacity of the country's premier steel production unit, had now reached 30 percent in December 2014 from a paltry three percent in May 2014. He said production capacity was likely to improve to 50 percent in February, 60 percent in March and by April, PSM's capacity will be raised further to 77 percent or even more, making it a profitable organisation. The supply chain of raw material had been streamlined with the help of the recent financial restructuring package, he added.
He said a financial re-structuring package worth Rs 18.5 billion had been given to PSM by the government, for the revival of national asset, adding PSM would soon approach Economic Co-ordination Committee (ECC) for approval and release of Rs 4.50 billion new package for the PSM.
He said it was a remarkable achievement of Pakistan Steel engineers and workforce who worked day and night to reach 30 percent production capacity utilisation through their dedication, skill and commitment. Zaheer Ahmed Khan sought Karachi Chamber's assistance in convincing the government to ensure a level-playing field to PSM so that it could regain its previous status of being a profitable organisation. "If we lose Pakistan Steel today, we will never be able to get back this marvel of Pakistan," he added.
He said the government had been granting bail-out packages during the period of crisis which began in 2008-09, but all those untimely bail-out packages were not effectively utilised, resulting in creating more and more cash-flow problems. Consequently, PSM had remained in trouble during the past five years but was now all set and well-positioned on its path to revival owing to the overall revamping of the mill by its existing staff who had all the capabilities, expertise and skills to transform PSM into a profit-making organisation, he added.
CEO PSM also invited a delegation from Karachi Chamber of Commerce and Industry (KCCI) to visit Pakistan Steel Mills in order to explore the possibility of setting up downstream industries on a 200 acres land available near the Mill. He urged the iron and steel dealers to play their part for development and progress of that national asset to bring it back on track of prosperity by procuring PSM products instead of relying on import.
He informed that PSM was in the process of repair and maintenance and improvements of its main plants and soon, they would be able to run the plant at high capacity with full efficiency. Responding to concerns expressed by iron and steel dealers over notices issued by National Accountability Bureau over price fixation issue, CEO PSM said a suo-motto notice was taken by the honourable Supreme Court and PSM had got nothing to do with those notices. However, Zaheer Ahmed Khan, while proposing KCCI to hold a meeting with Chairman NAB in order to discuss this pressing issue, assured that he would also attend that important meeting along with all stakeholders.
Speaking on the occasion, Vice Chairman Businessmen Group and Former President KCCI, Zubair Motiwala underscored the need to effectively utilise the dedicated workforce of PSM in order to make it a commercially viable organisation which would surely help in creating more employment opportunities and play its role in the development of economy.
President KCCI, Iftikhar Ahmed Vohra, said a KCCI delegation's visit to PSM would soon be organised so that issues, being faced by businessmen and industrialists associated with this important sector, could be discussed in detail. KCCI delegation's visit would also provide an opportunity to look for ways and means of how KCCI can play a role in the revival of Pakistan Steel.
He was fairly optimistic that enhanced interaction and co-operation between the business community and PSM management would surely pave way towards transforming PSM into a lucrative organisation. Senior Vice President KCCI, Muhammad Ibrahim Kasumbi said iron and steel sector played the role of a backbone in country's economy.
He was of the view that politicising of Pakistan Steel Mills was one of the major reasons for its failure to yield positive results. Underscoring the need to improve efficiency and management of PSM, he said the management strategies needed to be revisited and KCCI was ready to extend full support to PSM in that regard.