Prime Minister Raja Pervaiz Ashraf said on Thursday that despite fresh bailout package, turning around the loss-making Pakistan Steel Mills (PSM) remained a daunting task for the new management due to highly competitive market.
The premier’s comments came 48 hours after the Economic Coordination Committee of the Cabinet (ECC) approved new injection of Rs8.6 billion to the mills. The PSM which was in profit till 2008 has so far accumulated Rs71.3 billion in losses.
While chairing a high level meeting on Thursday to review the new business plan of PSM, the prime minister expressed his confidence in the new management, as its CEO Muhammad Javed was heading the PSM when it was earning profits a few years ago.
“I am very keen to see PSM developing into a self-reliant and profitable national enterprise and I am sure that it will stand on its feet after fresh structural reforms,” he said.
The PSM chief briefed the meeting that in the first phase, the capacity of the PSM would be increased up to 55% and the management’s target is to attain the 80% of the production by the end of 2013.
CEO further informed that the management’s preference is to use local iron ore for steel production and major chunk would come from Balochistan.
Published in The Express Tribune, July 27th, 2012.