Rs 6b for raw materials: PSM

KARACHI - Acting Chief Executive Officer of Pakistan Steel Mills (PSM) Engr Wasif Mehmood has said that the sovereign bank guarantee by the government on behalf of Pakistan Steel Business Plan will help PSM to stand on its feet again besides providing consistency in its financial condition. The said loan amount is nations security and entrustment to us which is will only be utilized on procurement of raw materials, he said. Today (yesterday), after receiving the copy of letter of comfort from National Bank of Pakistan for term loan of Rs 6 billion for PSM by Finance Division(GOP), Engr Wasif Mehmood called an urgent meeting with the directors and senior officials of PSM to discuss the policy and plan for utilizing this loan amount of Rs 6 billion. He said, management has a short term and a long term plan for PSM, and all the procurement will be done in a transparent way. The approved business plan with the help of government support will soon bring PSM out of crisis. Management will ensure that this amount will be only used for the betterment of Pakistan Steel by overcoming the shortage of raw materials and increasing the production capacity. PSM needs coal, iron ore, fine and lump as raw materials which are mainly imported from Canada, Australia, Germany, India etc. for making steel. From last three years PSM is facing raw materials shortage due to breakage of long term contracts.

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