ISLAMABAD: The production capacity of Pakistan Steel Mills (PSM) has risen to 25 per cent from 3pc in May 2014 owing to financial bailout package of Rs18.5 billion.

This was stated by CEO of Pakistan Steel, Maj-Gen (Retd) Zaheer Ahmed Khan, while briefing the Federal Minister for Finance, Senator Muhammad Ishaq Dar, here on Saturday.

An official announcement issued after the meeting said that Mr Khan claimed that the production capacity is expected to escalate to 77pc of the total 1.1 million tonnes per annum capacity by end of December 2014 which would be a break-even point, nullifying the losses occurring to the mills.

He apprised the minister that production is expected to touch 30pc mark by the end of September and should touch 40pc in October.

Mr Khan also briefed the minister about some issues faced by Pakistan Steel, including the imposition of 5pc duty on import of iron ore.

The minister responded that the Economic Committee of the Cabinet would consider the issue and take an appropriate decision in its next meeting.

Mr Khan also requested for relaxation in the condition of advance payment of GST on each imported shipment of raw material. He said it would be easier for Pakistan Steel to pay the GST on finished products.

The finance minister gave instructions to FBR to submit the case for decision regarding allowing three months time to PSM for payment of GST.

Other relevant administrative matters were also discussed during the meeting. The minister appreciated the surge in the production at PSM and asked the CEO to keep up the good spirit.

He hoped that Pakistan Steel would achieve the goals and targets that had been set for its complete revival.

Published in Dawn, September 21th, 2014