In June, two cargo vessels delivered a total of 73 000 t of iron-ore to the Pakistan steel jetty for State-owned Pakistan Steel Mills (Paksteel).
The MV Alam Murni and the MV Eastern Star vessels arrived at Port Muhammad Bin Qasim, in the south of Pakistan, in June, with the MV Alam Murni carrying 50 000 t of iron-ore from Brazil while the MV Eastern Star, carrying 23 000 t of iron-ore, was at the outer harbour, Paksteel spokesperson Shazim Akhtar says.
With the arrival of these ships, the total quantity of Paksteel’s raw material stock increased to 100 000 t of iron-ore and 150 000 t of coal.
Paksteel management is confident that, with the arrival of the these ships, the company’s capacity and production use (Capu) will further increase, helping Paksteel to achieve the targets set by the Pakistan government, says Akhtar.
Of the bail-out package of Rs18.5-billion provided by the government in January to revive production at parts of the Paksteel plant, Rs9-billion in raw material was used and material valued at Rs9.4-billion is still available in Paksteel’s inventory, explains Akhtar.
This material is either in the form of raw material or finished products in the form of steel slabs, he states.
Finished products produced by Paksteel, worth billions of rupees, are available for sale but cheap imported material dumped in the market is affecting its disposal, says Akhtar.
The balance of the bail-out package was essentially allocated to three months of prior salary commitments, utility bills for gas, electricity, water and fuel, old liabilities of spares and stores procured. In addition, Rs1-billion was earmarked for gratuity and provident-fund liabilities. Provision was made for only six months’ future salaries, amounting to Rs3-billion until breakeven is achieved.
Management has been able to bring a closed mill back into operation, Akhtar says. The mill achieved a maximum production capacity of 65% in March.
Average Capu for the current financial year stands at 25% despite the frequent breakdown in electricity supply, low gas-pressure and a shortage of water supply , as well as a four-month delay in the receipt of funds and materials.
Paksteel management is extre-mely thankful to the Pakistan government, especially the Ministry of Finance, the Privatisation Commission and the Ministry of Industries and Production for their positive role in the revival of Paksteel, concludes Akhtar.