As a result of a Rs 18.5 billion financial package approved by the ECC for the revival of Pakistan Steel Mills, its regular production has since been gaining momentum. The production capacity of the country''s premier steel production unit, has now risen to 25 percent from a paltry 3 percent in May 2014. The CEO, Pakistan Steel, Major General Zaheer Ahmed Khan (Retd), briefed the Federal Minister for Finance Ishaq Dar about the progress of Pak Steel at a review meeting here on Saturday.
He apprised the Minister that the production is expected to touch the 30 percent mark by the end of September and should touch 40 percent in October this year. It is expected to escalate to 77 percent of the total 1.1 million ton per annum capacity by end December 2014 which would be a break-even point, nullifying the losses occurring to the Mill, Zaheer Khan added.
The CEO also briefed the Minister about some issues faced by Pakistan Steel including the imposition of 5 percent duty on import of iron ore. The Minister responded that the issue would be considered at ECC meeting and appropriate decision taken in this regard. The CEO also requested for relaxation in the condition of advance payment of GST on each imported shipment of raw material.
He said it would be easier for Pak Steel to pay the GST on the finished products. Finance Minister gave instructions to FBR to submit the case for decision regarding allowing three months time to Pak Steel for payment of GST. Other relevant administrative matters were also discussed during the meeting. The Minister appreciated the surge in the production at Pakistan Steel and asked Zaheer to keep up the good spirit, hoping Pak Steel would achieve the goals and targets that have been set for its complete revival.-PR