Revamping and upgradation plan worth Rs 12 billion of the Pakistan Steel has been finalised, and will be placed before the Economic Co-ordination Committee (ECC) in its forthcoming meeting for necessary approval. The plan is expected to be executed by March 2006, which would help the Pakistan Steel to enhance its production to 1.5 million tonnes, said Pakistan Steel (PS) Chairman Lieutenant-General Abdul Qayyum (Retd).
Talking to newsmen here on Saturday, he said the PC-I of upgradation plan has been prepared, liquidity is lying with the bank, and draft tender document has also been finalised.
A UK-based firm has also conducted market survey, while the Planning Division has already accorded approval of the plan.
"As a matter of fact, the amount required for this project is self-funded, and there must have no need of any PC-I. We have ensured transparency in all matters as the Pakistan Steel has signed the MoU on transparency", he maintained.
Apart from this, the PS chief said: "We have also applied to offer JCRA and PCRA for international rating, and given detailed presentation about the features and prospectus of the Pakistan Steel.
To a question, Abdul Qayyum said there would be no change in steel prices for next three-four months. He ruled out any possibility of upward change in the prices, saying: "We have to watch the public interest."
He said the steel prices in the international market are on the rise where cock-n-coal prices have been increased from $42 to $100 per ton, adding, at present, the price is not an issue, but availability of cock-n-coal is most important internationally.
Expressing his concern over hike in steel prices, the PS chief said despite the fact that Pakistan Steel provides steel at lower cost, some big fish ie distributors are charging high prices in the name of premium which resulted an increase of about Rs 6,000 per ton in the market, adding: "We are identifying such dealers and finding appropriate evidence against them so that their dealership could be cancelled."
He said the Pakistan Steel meets only 25 percent of the domestic steel demand, which is about four million tonnes, while 75 percent demand is fulfilled through import, ship-breaking, and other sources.
The PS chief said: "I have suggested to the government to provide relief through issuing SRO instead of changing duty tariff to save the Pakistan Steel from any crisis.", adding the Pakistan Steel, due to increase in industrial activities, is facing huge demand load, as the developing projects of Sui Southern and the import of gas from Iran have also increased the burden.
Moreover, Abdul Qayyum, during a meeting with a delegation of Pakistan Pipe Manufacturers Association, assured that the Pakistan Steel is well aware of their problems and would ensure fair and even supply of steel to the distributors and consumers, adding: "In order to ensure transparency, we have already made available necessary information regarding steel supply to the distributors from Gwadar to Khyber on internet along with prices."
Pipe Industries Director Muhammad Hashim suggested that either the Trading Corporation of Pakistan (TCP) or the Pakistan Steel should import steel so that demand and supply gap could be bridged and consumers could be saved from blackmailing.
He claimed the Pakistan Steel has received steel purchase orders for the next five years, and in case of import of steel, there would be no issue of oversupply.
He appreciated the Pakistan Steel chief for not enhancing steel prices.
Earlier, Abdul Qayyum delivered a key-note address at the annual national seminar on 'Engineering Materials', organised by the Pakistan Institute of Meteorological and Material Engineers at the Institute of Engineering and Emerging Technologies of Punjab University.
Speaking on the occasion, he said the Pakistan Steel, which once was facing a loss of Rs 19 billion, now has registered a record sale of Rs 25.7 billion, and also earned a record after-tax profit of Rs 4.7 billion, adding the Pakistan Steel has earned 300 percent more than the targeted profit and overcome losses amounting to Rs 7 billion.
The PS chief also said the Pakistan Steel is paying Rs 660 million as taxes on quarterly basis, adding: "We have achieved the level of 96 percent capacity production, which is healthy sign of economic growth.
He said the economic development only depends upon industrial growth, which is possible thorough education and knowledge and practical approach.
Abdul Qayyum also said that Japan, Korea, Singapore had not achieved economic development through its resources rather it was education, which provided them status of developed countries. On the other hand, Kango, Nigeria, Sudan and other African and Middle East countries are very rich in resources, but they are still under developed only for lack of education, he added.
"Our people lack industrial vision that is why over 4,000 industrial units are sick. Those who set up industrial units were totally lacking guidance, aptitude and dedication. There are people who only receive loans for setting up factories to write off their loans", he said.
He stressed the need for techno-commercial feasibility prior to establishment of any industrial unit.
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