The Ministry of Finance has released Rs 3 billion to the cash-strapped Pakistan Steel Mills (PSM). The amount is the last tranche of the approved financial restructuring package of Rs 18.5 billion from the government, said a PSM spokesman.He said that from the previous tranches received, the PSM had disbursed salary among the employees and made arrangements to procure best quality of raw material ie Metallurgical Coal and Iron Ore, in addition to the payment of various utility bills.
It is imperative to mention here that the received amount will be utilised as per the approved plan by ECC, the spokesman said. With the help of last instalment received, PSM management has disbursed salary up to October, 2014. Moreover a summary, for the salary of November and December 2014, has already been sent to ECC for approval.
CEO, Pakistan Steel, Major General Zaheer Ahmed Khan (Retd), hoped that with the release of the last tranche, production of the mill would further improve and will help in achieving 77% (breakeven point) capacity utilisation by April, 2015. During January the production target is set as 40%, February 60% and March 77%. The PSM management is making efforts to establish a continuous supply chain of raw material to attain the desired capacity. The PSM management is making efforts to open LCs to procure raw material ie Metallurgical Coal and Iron Ore.
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