Pakistan Steel Mills to receive Rs11b bailout package on May 16

Funds to be used mainly to purchase raw material to boost output.

KARACHI: Pakistan Steel Mills will receive Rs11 billion on May 16 as part of a bailout package to purchase raw materials to increase output to 60%, Federal Minister for Production and Industries Shahzada Ahsan Ashraf Sheikh said on Thursday.

He was speaking to gathering organised by the chairman of the Export Processing Zones Authority (EPZA) Muhammad Saadat S Cheema at a local hotel. The representatives of leading national and multinational organisations and associations attended the event.

“Energy crisis and security problems have not only affected investment inflow but has also compelled local investors to shift investments outside the country,” Shaikh said while talking to the media following the programme.

To play its part, Shaikh said that the caretaker government has made different policies for the energy sector that will assist the next government when it will be formulating its policies.

He also said that security issues and energy crisis will be the top challenges for the next government and for that, it will have to adopt emergency measures.

Speaking on the problems of the business community of Karachi, he said the law and order problem has caused numerous economic problems not only for Karachi but also for the economy as a whole.

“Pakistan has to overcome security issues in Karachi otherwise the situation may aggravate further in the coming months,” he warned.

EPZA Chairman Cheema said that 50 new industries have been set up in export processing zones in the last five years, while eight to nine closed down in the same period.

He said that EPZA is trying to resume industrial production in sick industrial units despite difficult business atmosphere in the country.

To keep in direct contact with the business communities across the country, EPZA has recently established its offices at all major chambers of Pakistan so that it can attract more investments from local businesses.

The Government of Pakistan established EPZA in 1980 to increase the pace of industrialisation in the country and enhancing the volume of exports by creating an enabling environment for investors. Today, it has 10 zones across different cities of Pakistan including Karachi, Risalpur, Gujranwala, Gwadar, Sandak, and Sialkot etc.

Published in The Express Tribune, May 10^th, 2013.

Like Business on Facebook to stay informed and join in the conversation.