Pakistan Steel Mills regular production has been gaining momentum and the production capacity has risen to 25 per cent from a paltry 3 per cent in May 2014 owing to the financial package of Rs 18.5 billion specially approved by the ECC for its revival.
The CEO, Pakistan Steel, Maj General (r) Zaheer Ahmed Khan, briefed Federal Minister for Finance Senator Ishaq Dar about the progress of Pak Steel at a review meeting on Saturday. He apprised the minister that the production was expected to touch 30 per cent mark by the end of September and should touch 40 per cent in October. It is expected to escalate to 77 per cent of the total 1.1 million ton per annum capacity by the end of December 2014 which would be a break-even point, nullifying the losses occurring to the Mill, Zaheer Khan added.
The CEO also briefed the minister about some issues facing Pak Steel including the imposition of 5 per cent duty on import of iron ore. The minister responded that the issue would be considered at the ECC meeting and appropriate decision would also be taken in this regard. The CEO also requested for relaxation in the condition of advance payment of GST on each imported shipment of raw material. He said it would be easier for Pak Steel to pay the GST on the finished products. The minister gave instructions to FBR to submit the case for decision regarding allowing three months time to Pak Steel for payment of GST.
Other relevant administrative matters were also discussed during the meeting. The minister appreciated the surge in the production at Pakistan Steel and asked CEO Zaheer to keep up the good work. He hoped Pak Steel would achieve the goals and targets that have been set for its complete revival.
Secretary Finance Dr Waqar Masood, Advisor Finance Division Rana Assad Amin, Member Customs, FBR, Nisar Muhammad and the DG (ERU), finance, attended the meeting.
Typing mistake.It is actually now 2.5 %.
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