KARACHI - Pakistan Steel Mills has opened two Letter of Credits for the purchase of 0.11 million metric tonnes of coal after the clearance of National Bank on 29th August. These LCs were opened on release of the first trance of the bailout package announced by the government against the business plan of Pakistan Steel.

National Bank has opened the LCs for the purchase of two shipments of coal from Australia and Canada containing 55,000 metric tonnes each and a total of about 1,10,000 metric Tones of coal.

Pakistan Steel is currently in dire need of raw materials including coal and iron ore which are being imported from Canada and Australia. More over iron ore purchase is also in process and soon its shipments will be finalised after completion of necessary formalities.

Chief Executive Officer of Pakistan Steel Mohammad Javed commended the efforts of PSM Finance Department for their role in the arrangement of LCs through the bailout package.

He expressed his hopes that after the availability of raw materials in continuity Pakistan Steel production level will be improved according to the business plan. Hopefully these coal shipments will reach Pakistan Steel Jetty in coming months which will be utilised in the process of Pakistan Steel. The first installment of this bailout package of Rs 3.8 billion has been provided to Pakistan Steel for purchase of raw materials and two salaries of PSM employees.

PSM management has disbursed July 2012 salary of PSM employees from this amount. According to Pakistan Steel production plan, the production units are currently working properly while after the induction of raw materials the production will be increased accordingly.