Pakistan Steel to Earn Rs 3 Bln by June 07
Pakistan Times Business & Commerce Desk

KARACHI: By June this year, Pakistan Steel’s profit is expected to be between Rs 2.5 billion to Rs three billion. This was stated by Chairman Pakistan Steel, Maj. Gen. (Retd) Muhammad Javed.

He was participating in the ‘Bilmushafa’ programme of radio Pakistan Karachi.

Gen. Javed said that Pakistan Steel is expected to have operating profit of Rs 1.5 billion to Rs two billion with a production capacity of 90 per cent with a sale between Rs 29 to Rs 30 billion.

He said that a revenue of Rs 1.5 billion is expected from the sale of the Pakistan Steel’s land for the setting up of the industrial park and setting up of the industries.

The Pakistan Steel chief pointed out that in the year 2005-06, the production capacity of this unit was as low as 62 per cent and the operating loss was to the tune of Rs. 1.8 billion.

He said that after taking over the charge in September 2006, his priority was to enhance the production capacity up to 90 per cent.

Javed said that in the months of July and August the production level was between 70 to 75 per cent and in September-October it was 90 per cent. At the moment the production level is 85 per cent and would be enhanced to 90 per cent towards the end of the year.

He pointed out that Pakistan Steel achieves break even at the level of 80 per cent production.

He pointed out that the loan of this industrial unit was about Rs. 19 billion in the year 1999. The loan of Rs 11 billion has been paid by the Pakistan Steel while the payment of the remaining Rs 7.5 billion would begin in the year 2013.

Gen. Javed said that emphasis is laid on achieving production capacity of Pakistan Steel which is 1.1 million tons per annum. Steps are also being taken for quality improvement and marketing etc.

He was optimistic that in two years, Pakistan Steel would emerge as a financially stable organization with stable production also.

The Pakistan Steel chief said that it is also being considered to float the shares of this organization.

Replying a question, he said that there appears no need for any retrenchment of workers at Pakistan Steel where total strength is 16,400 of which 12,000 are regular employees and about 4,000 on contract and daily wagers.

Gen. Javed said with increase in production, staff with management skills would be required to help enhance the marketing techniques and improve the purchase system.

He said that Pakistan Steel would increase its power generation capacity after capital repairs of its plant and would also be in a position to provide 10 to 15 MW electricity to KESC.

Pakistan Steel chief stated that after repairs of the coke oven batteries, there would be no need to acquire coke and savings would be made on this count.

He was optimistic that with the overall improvements, Pakistan steel would be in a position to enhance its production capacity to 1.3 million tons per annum.●