Federal Minister for Industries and Production Ghulam Murtaza Khan Jatoi has said that Pakistan Steel Mills can become a viable enterprise if over Rs 80 billion is provided for its repair, replacement, modernisation and other routine expenses. He said that another one billion rupees would be needed for its expansion to gain 1.5 million tones per year production capacity. However, he added that this would be difficult for the government to inject such a huge amount.
The Minister was speaking during a meeting with the leadership and members of Karachi Chamber of Commerce and Industry (KCCI), here on Monday. KCCI President Younas M Bashir, Businessmen Group (BMG) Chairman and former KCCI president Siraj Kassam Teli, KCCI Senior Vice-President Zia Ahmed Khan, Vice-President Chaudhry Naeem Sharif, former president Iftikhar Vohra, and members of the KCCI Managing Committee were present in the meeting.
Jatoi said that for privatising Pakistan Steel Mills, the Privatisation Commission had come up with two models: selling 26 percent or 51 percent shares to a strategic partner/group. "Two group of companies from China have shown interest in purchasing Pakistan Steel. One is willing to buy PSM outrightly and the other has offered to become a strategic partner with the government," he added.
He said the federal government was weighing all the offers in this regard including that from Sindh government and the decision would be taken on merit and practicality. He was critical that during the last government of Pakistan People's Party, Pakistan Steel was very badly handled and it made huge losses. In 2008, it was very profitable organisation, he said.
Jatoi, on behalf of his Ministry, assured that every possible step would be taken to resolve the problems facing industries especially in Karachi. "Yes, I believe in closer liaison and co-ordination with the business community. I know the importance of Karachi. Besides all out support from my Ministry, I will try to ensure co-ordination with other concerned ministries for maximum facilitation and incentives for existing and upcoming industrial units," he added.
He said that his ministry was engaged with Federal Board of Revenue (FBR) to get sanctioned the tariffs for Yamaha Motors and other motor companies operating here at par with the new entrants and hoped that it would be done within next couple of days. Jatoi urged the business community to also focus the rural areas of the country and set up their industrial units there to provide employment to the area people and to benefit from rural economic potential. He said another 100 acres was being added to Karachi Export Processing Zone (KEPZ) under Export Processing Zones Authority (EPZA). The Minister said that the federal government wanted complete peace and security in Karachi and for this purpose it desired restoration of total powers to Rangers so that they could effectively continue their operation.