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Financial restructuring in PS soon, says chairman

KARACHI: Pakistan Steel (PS) management has approached government for immediate financial restructuring to carry out expansion in the production capacity of this public sector organisation, said Chairman Steel, Lt.-Col. Afzal Khan (Retd).

He was addressing the workers here on the eve of the new millennium.

The Pakistan Steel Mills Chairman, said the government had assured of full support for the execution of the expansion plan and the feasibility reports for the same had already been forwarded to the concerned quarter.

Lt.-Col. Afzal (Retd), while emphasising the need of expansion in the steel mills production capacity, said it was not only essential to make the plant economically useful, but also to meet the demand of steel products in the country.

He said, "except Pakistan Steel all the plants of 1.1 million tonnes of capacity set up by the ex-Soviet Union in different countries have at least tripled their production and are being run successfully.

Pakistan Steel has persistently shown a steady progress. The losses have been reduced, rather it has shown operational profit of 12 to 13 percent during last financial year period, but because of the financial liabilities accumulated in the past amounting to Rs 19 million including a mark up of Rs 7 billion it is compelled to show itself into red, Afzal Khan said.

Chairman Pakistan Steel also placed the repair and maintenance of the plants on top priority in order to ensure their survival.

The PS's chairman also asked workers to adopt such measures through which the cost of production be minimised, especially saving in the energy sector.ÑAPP