PSM aims to earn profits by June

LAHORE: Pakistan Steel Mills (PSM) expects to become a profit-earning institution and operate on 100 percent production capacity by the end of this financial year, said acting Chief Executive Officer (CEO) of PSM Imtiaz Lodhi in an interview with The News.

“The PSM has been working at 50 percent capacity; it will reach 75 percent by the end of December 2010; 90 percent by March 2011; and 100 percent by June 2011,” he said.

He said he had assured the dealers that no action would be taken against them by the FIA. They wanted to keep away from PSM owing to the ongoing investigation, he said, adding that written assurance would also be provided to the dealers about the FIA investigation. He said PSM had asked FIA officials to restrict their investigation to the period when the matter under probe came to light. “The FIA officials also promised not to harass anyone and keep their investigation to that period,” he said.
To a question about the difference in prices of PSM products and the open market, Lodhi said some parties were misusing the SRO of steel raw material import. “They import items more than their requirement, thanks to zero-rated regime, which they later sell in the open market at prices lower by Rs2,000 to Rs4,000 per ton than PSM prices.”


He said PSM planned to produce all steel items very soon.


“We offer dealers to start business with PSM on LC and open three-month advance LC with PSM and places their orders,” he said. This way their supply line would be ensured and PSM would also get cash, he added.

Lodhi mentioned that PSM had introduced a new system of purchase and put all production details on its website. “Those who place orders through the website get a booking slip and get supply after they make payment,” he said, adding that automatic queuing system would also end complaints of discriminatory treatment.

To a question about the fire in PSM’s Lahore office, he said it was caused by short circuit, according to initial investigation. But, he added, the final report would be made after insurance company’s findings. There had been very little material loss, which would be covered by insurance, he said and added that no data had been lost because parallel data was also maintained in the head office and a third place, he added.

Lodhi mentioned that an international audit firm, Grant Thornton, was hired to conduct forensic investigation of the loss and it would start working from November 1. “They have been given two months to conduct the investigation,” he said.