The Pakistan Steel Mills (PSM) has reorganised its maintenance, operational and production strategy as the raw-material-starved steel producer is restlessly awaiting the materialisation of Rs11 billion bailout package the federal government had recently announced. “The PSM management has reorganised its strategies to get maximum benefit of the bailout package within minimum possible period,” said a spokesman of PSM. He said it had also been planned to establish a continuous supply chain of iron ore and coal. The placement of order and shipment of raw materials had also been planned to maintain at least 90 days stock of raw material, specially iron ore and coal, he said. The spokesperson hoped that the package will soon be given to Pakistan Steel. The entire bailout package, he said, will only be used for the procurement and import of raw materials i.e. iron ore and coal to enhance the production to 80pc by the end of this year and in first phase 60% by the end of August 2013. The recent announced bailout package of Rs 11 billion would be given through a single tranche in a shape of soft loan being provided by National Bank of Pakistan under the guarantee of the federal government. The spokesman said a bank consortium is formed to work out the working capital requirement of Pakistan Steel and arrange funding accordingly.
