PSM needs Rs27bln funds

ISLAMABAD: Minister for Industries and Production Ghulam Murtaza Khan Jatoi on Thursday said there was need to induct Rs27 billion in Pakistan Steel Mills (PSM) to make it profitable.

Answering a question in National Assembly, the minister said modernization of PSM and capacity of the mill was also need to be enhance to increase its production.

He said there were just two options one privatization of PSM and the other was to induct the billions of rupees to make it profitable.

The minister said the PSM has stopped productions due to the non supply of gas from more than seven months.

He said the SSGC's  outstanding balance as on November 2015 was Rs 20.8 billion and the bill for the month of December was Rs 72 million, whereas a payment surcharge of Rs 799 million would be charged after the due date of Januaray 21, 2016.   Jatoi said the production was increased by package of Rs 18.50 billion.  PSM had been lifted from 1pc CAPU of April 2014 to 41pc in March 2015. The management has demanded Rs9.30 billion for the supply of raw material.