Two shipments of raw material containing 55000 MT Iranian fine Iron ore and 55000 MT coal are scheduled to arrive at Pakistan Steel Mills this month, helping the mills to maintain its production. Pakistan Steel due to low capacity utilisation is currently facing accumulated loss of about Rs40 billion and the total liabilities as on September 15 are Rs.55.497 billion, while the salaries of workers and officers are still being made on monthly basis.
According to the official spokesperson of the mills, drop in capacity utilization is due to very high prices of coal in the international market in quarters April-June, 2011 and July-September, 2011 as compared to contract year of 2010-11, and liquidity crunch being faced by Pakistan Steel. Historically, sales in the months of August and September remain low due to monsoon season and the same behavior was observed this year and it is expected that the sales will pickup in coming months.
It is to be noted that the new Board of PSM was constituted on 10th February this year and since then five Board meetings have been held, where major policy decisions have been taken and PSM management efficiently executed them. In this regard the Board has finalised a bailout proposal/business plan, which is under scrutiny by the auditors, and proposal will be sent to the government/ministry of finance after the Board’s approval and as soon the funds are arranged PSM can quickly achieve higher capacity utilisation.
Two shipments of iron ore to arrive at Steel Mills
