June 14, 2003	Saturday	Rabi-us-Sani 13, 1424

ISLAMABAD, June 13: Pakistan Steel (PS) will pay back its loans worth Rs9.4 billion to five commercial banks on July 1, 2003, and in return is expected to get 10 per cent discount because of clearing its entire debt.

Official sources told Dawn here on Friday that the federal government has agreed, in principle, to help PS get some decent discount up to 10 per cent for returning all its loans to banks.

Governor State Bank Dr Ishrat Husain, sources said, has been requested by Finance Minister Shaukat Aziz to convene shortly the meeting of the heads of National Bank of Pakistan (NBP), Habib Bank Limited (HBL), United Bank Limited (UBL), Muslim Commercial Bank (MCB) and the Allied Bank of Pakistan (ABL) in order to get 10 per cent discount in payment for Pakistan Steel.

Earlier, the PS had paid back Rs4.7bn to the consortium of five commercial banks in 2000 under its financial restructuring plan.

Generally, sources said all the five banks were not very enthusiastic to get back their loans from PS in “one-go” as they were more interested in markup being accumulated on original amount. Moreover, they reportedly maintained that they have with them already access liquidity and that they did not know where to invest the money being returned by Pakistan Steel.

It was also learnt that the present management of Pakistan Steel has complained to President Pervez Musharraf that ever since general elections were held and political governments installed in Centre and Sindh, political interference has started in the affairs of the PS.

Maj. Gen. Ihtesham Zamir, Incharge of the political cell of the ISI, and the officials of the President House, sources said, have been told to save Pakistan Steel from constant political interference. The issue was also brought to the notice of Secretary Ministry of Industries and Production, Dr. Akram Sheikh in writing by the chairman of the PS.

“The performance of the state sector companies have always suffered due to political pressure, inefficiency and other malpractices and we hope the president will intervene specially to save the Pakistan Steel which have been made financially viable after a long time”, said an official of the ministry of industries and production.

When contacted, he confirmed that the authorities of the PS have taken up the issue of outside interference both with the ministry and well as the President House.

He said some other pressure groups were also forcing the management of the PS to induct people in the organization or get ready for the serious consequences.

Chairman Pakistan Steel Col. (Retd) Afzal Khan when approached for comments did not like to talk about the subject. But when pressed he said, “yes I am seeking the support of the president and my ministry with a view to get rid of outside interference in my organization”.