ISLAMABAD, Nov 20: Pakistan on Thursday allowed a Saudi Group to set up a $100 million steel billet plant near Pakistan Steel in Karachi for 100 per cent export and agreed to declare the area as Export Processing Zone (EPZ).

A decision to this effect was reached at a meeting presided over by Industries Minister Liaqat Ali Jatoi. A formal approval would be accorded by the Economic Coordination Committee (ECC) of the cabinet shortly.

The meeting was attended by the heads of Pakistan Steel, Export Promotion Bureau (EPB), Water & Sewerage Board Karachi and representatives of Karachi Electric Supply Corporation and Sui Southern Gas Company.

The Pakistan Steel has agreed to provide 100 acres to M/S Al-Tuwariqi Group of Companies of Saudi Arabia for this project in addition to extending necessary PS facilities.

The meeting decided to declare the 100 acres area as EPZ. The Chairman, Export Promotion Bureau (EPB), Tariq Ikram who recently visited Saudi Arabia and held discussions with M/s. Al-Tuwariqi Group informed that the group planned to set up a steel billets plant for producing a million tons steel billets per year for 100pc export.

The plant would be based on the latest technology of establishing a Sponge-Iron plant based on Natural Gas along with Billet Melt-Shop.