Pakistan Steel continues bleeding

"PSM suffered losses in excess of Rs26 bn by June 2009 followed by a loss of Rs13 bn by June 2010." — File Photo

ISLAMABAD: Pakistan Steel Mills suffered losses in excess of Rs26 billion by June 2009 followed by a loss of Rs13 billion by June 2010 and continued to bleed, Minister for Industries and Production Mir Hazar Khan Bijarani told the National Assembly on Wednesday.

The minister attributed losses to inadequate and inconsistent supplies of raw materials because of non-availability of funds that brought production down to 40 per cent.

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.”

Soaring cement, steel prices hit construction

 KARACHI: There is substantial increase in steel bar prices in the market, while enhanced activity in the construction sector has made prices of cement moving up again.

Many consumers paid Rs45,000 per ton for steel bars made of ship plates two months back, now it is priced at Rs66,000 per ton.

PSM records Rs5.622 billion loss, NA informed

ISLAMABAD: Despite the change in top management, Pakistan Steel Mills continues to run into massive losses and during the first six months of the current financial year it has recorded a loss of well over Rs5 billion.

According to a detailed document recently submitted to the National Assembly, the PSM during the period between July 2009 and January 2010 has recorded an estimated loss of Rs5.622 billion.