Recent financial restructuring package of PSM will lead to a survival: Visit of Federal Minister for Industries and Production

Sameer Nazir Siyal
KARACHI: The Federal Minister of Industries and Production, Ghulam Murtaza Jatoi visited Pakistan Steel Mills and was briefed by the Chief Executive Officer Pakistan Steel Mills, Major General (R) Zaheer Ahmed Khan HI (M) about his progress.
The federal Minister showed satisfaction on the measures taken by the current management, and ensuring the continuous supply chain of raw material i.e. Coal and Iron Ore. The Minister also showed satisfaction on the working of the employees at different sites during the visit of the plant. The federal Minister assured government support to make PSM a viable entity.
During the briefing the CEO stated that the government has shown great magnanimity in giving the Financial restructuring package at end of last financial year and in such huge amount (i.e Rs. 18.5 billion) in such a short time (i.e 9 months).
The CEO further added that if he could get Rs. 7-8 Billion in next 1 to 2 years and permission to induct technical / professional manpower in phases in two years (200 each year’s) to makeup the fast retiring experience manpower, then Pakistan Steel has a great future and is unbeatable. Pakistan Steel is a marvel and a great national technological and structural asset. If lost it will never be replicated in decades, It should thus be used as a tool to become an industrialized country fast track and achieve middle income status at the earliest.
Besides, creating a happy workforce and conducive environment, the CEO intended seeking government help to carry out some essential capital repairs to critical plant equipment for sustainable full capacity performance. This also includes adding some economical value-added units to help enhance profitability in the short run.
The management urged the Federal Minister to make the payment of the recent financial restructuring package available to the PSM at the earliest to allow the company to increase capacity utilization to 77% by January, 2015 as target given by the GoP.
The minister of Industries and Production was informed that PSM will obtain a production level of 20% during the current month i.e. July, 2015.
Moreover, the CEO stated the expansion of PSM is the need of the day. Plant of such size is not economically viable. Efforts may be made for its expansion in phases to 1.5 MPTY in first phase to 3.0MPTY.
The Federal Minister also met Chairman CBA, Shamshad Qureshi at Operational building. Mr. Shamshad Qureshi apprised the minister of the current problems and challenges being faced by the organization in general and about the workforce in specific. The Minister assured support in all respects and felicitated the Chairman on maintaining such peaceful and cordial environment despite many difficulties.
After briefing, the minister visited the Coke Oven by Product Plant which has been made operational after September, 2013.
He felicitated the CEO on resuming the production of Coke after long span of time. The federal Minister praised the employees working at different units of PSM and assured them of government support.