KARACHI, July 30: Pakistan Steel chairman Abdul Qayyum Khan on Thursday said the organization made record sales of Rs25.798 billion, supplemented by some other income, during the financial year 2003-04 against the target of Rs19.23 billion.

The chairman in his presentation about the present status and future plans of the organization, during a contract signing ceremony held here, said Pakistan Steel had utilized 97 per cent average production capacity against the budgeted capacity of 93pc.

It made a record production of 1.024m tons during the year 2003-04. It had also earned Rs6.281 billion net profit in the last fiscal year, while in 1990-91, it was only 72pc.

Mr Khan said the organization had improved its liquidity position to Rs7687m from Rs412m as its opening balance of 2003-04. Whereas it reduced its accumulated losses to Rs1,367m against Rs7,648m in 2002-03.

In 2001-02, these losses were Rs8,672m. It has till date contributed Rs52.729bn as duties and taxes to the national exchequer. He said Pakistan Steel had paid almost all loans but Rs7bn as deferred loan.

About steel prices, he said these were mainly linked to prices in international steel market. However, he said the price was already cut down by Rs1,500 per ton, and since February last the prices were stable, he added.

The chairman said that import tariff to Pakistan Steel was gradually being reduced and the organization was facilitating ship breaking and steel import. Mr Khan said Pakistan Steel had planned to increase its capacity to 1.5m tons in phase-I of reconstruction, widen product range, install modern instruments and improve quality of its products.

Russia had expressed interest to provide the requisite assistance ensuring maximum indiginization. Rod Jens, managing director, Corus Consultancy of the UK, with whom Pakistan Steel on Thursday entered into an agreement to seek technical and professional support, briefed about his firm's activities and maintained that Pakistan Steel task was of classic type. -APP