A meeting of Senate Standing Committee on Industries and Production (MoI&P) headed by the Senator Ahmad Khan was held in Islamabad to discuss the fate of Pakistan Steel Mills (PSM) and chances, if any, of its revival. Prime Minister’s Advisor on Commerce, Textile and Industries and Production and Investment, Abdul Razak Dawood told the committee that Pakistan in its current economic state is unable to raise $800mn required to revive PSM at enhanced capacity of 3 million tons per annum.
He informed the committee that six foreign companies (three Chinese and three Russian) have shown an interest in the revival of PSM and some of them have approached the Prime Minister to get the Mills. He said that many parties are only showing interest due to PSM’s 19000 acres of land.
The Expert Group headed by Khalid Mansoor of M/s Hubco will submit its report regarding revival of PSM to Dawood Razaq in the first week of April. Then the report will be shared with Finance Minister Asad Umar. Subsequently, the report will be tabled before the specially convened meeting of Economic Coordination Committee (ECC) of the Cabinet. If the ECC clears the report then it will be placed before the next meeting of Federal Cabinet.
Razak criticized the way PSM was shut down during the tenure of Engineer Memon Jabbar stating that the way the blast furnace was turned off has left it filled with solid steel 15 feet high. He quoted the example of of Al-Tuwairqi Steel Mills which was shut down properly and will be restarted sometime soon.
Convener Pakistan Steel Mills, Stakeholders Group Mumraiz Khan informed the committee that 2000 acres of land of PSM has been occupied illegally and no one is interested in reclaiming the land, not even the Ministry of Industries
Senator Nauman Khattak divulged that he owns 1 million tons capacity steel mills plant but 1700 people are running his mill.
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