South Africa seizes Pakistani ship over unpaid dues
Iron-ore supply company demands clearance of PSM arrears
PHOTO: PNSC
ISLAMABAD:
A South African firm has detained a ship of the Pakistan National Shipping Corporation (PNSC) over its long-pending arrears at the Pakistan Steel Mills (PSM). The iron ore supplying company claims outstanding dues of $14 million.
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Officials familiar with the development told The Express Tribune that the PNSC ship, leased to International Brokerage House, had anchored at Port Elizabeth for refuelling when it was seized.
The steel mills, officials said, signed an agreement with the South African company for iron ore supply in 2009. However, this deal could not continue.
The South African firm contends the PSM and PNSC are both owned by the government and it should pay its dues of $14 million to get its ship released.
The PNSC has approached the finance ministry and foreign office to either pay the money or give a surety to the foreign company so that the ship might be released.
A PNSC spokesman confirmed the episode, saying the law of South Africa gave protection to the company to take such steps. The firm, he added, wants the Pakistani government to pay its dues on behalf of the steel mills.
Pakistan’s import and export industries worth over $1 billion each
Interestingly, the PSM is not even in the position to meet its day-to-day expenses let alone pay its arrears. The Privatisation Commission (PC) recently sought permission to sell inventory worth Rs5 billion to meet the expenses at the mill.
On June 28, the commission had floated two proposals at a meeting of the Economic Coordination Committee (ECC) – the top development decision-making body.
The PC firstly asked the ECC to release the salaries for the PSM employees amounting to Rs435 million and Rs380 million for February and March, respectively, and secondly it proposed selling PSM inventory worth Rs5 billion to meet daily expenses of the mill, which has been virtually closed for about a year.
The steel mills needs Rs190 million to meet its day-to-day expenditures and keep the plant operational at the required heating mode.
Published in The Express Tribune, August 23rd, 2016.
A South African firm has detained a ship of the Pakistan National Shipping Corporation (PNSC) over its long-pending arrears at the Pakistan Steel Mills (PSM). The iron ore supplying company claims outstanding dues of $14 million.
Empowered: Advisory board to regulate tariffs of shipping lines
Officials familiar with the development told The Express Tribune that the PNSC ship, leased to International Brokerage House, had anchored at Port Elizabeth for refuelling when it was seized.
The steel mills, officials said, signed an agreement with the South African company for iron ore supply in 2009. However, this deal could not continue.
The South African firm contends the PSM and PNSC are both owned by the government and it should pay its dues of $14 million to get its ship released.
The PNSC has approached the finance ministry and foreign office to either pay the money or give a surety to the foreign company so that the ship might be released.
A PNSC spokesman confirmed the episode, saying the law of South Africa gave protection to the company to take such steps. The firm, he added, wants the Pakistani government to pay its dues on behalf of the steel mills.
Pakistan’s import and export industries worth over $1 billion each
Interestingly, the PSM is not even in the position to meet its day-to-day expenses let alone pay its arrears. The Privatisation Commission (PC) recently sought permission to sell inventory worth Rs5 billion to meet the expenses at the mill.
On June 28, the commission had floated two proposals at a meeting of the Economic Coordination Committee (ECC) – the top development decision-making body.
The PC firstly asked the ECC to release the salaries for the PSM employees amounting to Rs435 million and Rs380 million for February and March, respectively, and secondly it proposed selling PSM inventory worth Rs5 billion to meet daily expenses of the mill, which has been virtually closed for about a year.
The steel mills needs Rs190 million to meet its day-to-day expenditures and keep the plant operational at the required heating mode.
Published in The Express Tribune, August 23rd, 2016.