Soomro calls for investment in steel mills – Journal
ISLAMABAD: Privatization Minister Mohammadmian Soomro has invited potential investors to join us and run Pakistan Steel Mills at full speed as indigenous demand for steel and iron has grown in the country.
Speaking at a meeting of domestic and international investors for Pakistani steelworks revival in Karachi on Thursday, Soomro hoped that the consortium of world-famous investors would participate in the revival of Pakistani steelworks.
The Privatization Commission has already invited interest in relaunching the MSP, and the deadline for submitting EoIs is September 30.
The roadshow for Pakistan Steel Mills, which started in Islamabad, ended Thursday in Karachi.
Minister notes that demand for steel and iron has increased
The Ministry of Privatization is actively pursuing this unique stimulus package, which will not only strengthen the economy, but also stimulate economic activity at a broader level.
Pakistan has a low capacity utilization of around 60 percent for iron and steel for several reasons, as the country’s steel industry is characterized by small factories, most of which use outdated technology. In particular, most smelting, re-rolling and manufacturing companies have small factories compared to their competitors in steel-exporting countries.
Likewise, the use of obsolete and energy inefficient technologies increases the production cost of these companies and results in production of poor quality and varying standards, according to the commission.
Consumption of crude steel increased from 2.17 million metric tons in 2010 to 5.7 million metric tons in 2019. Growth in consumption is due to population increase as well as increase global industrial activities and infrastructure projects related to CPEC.
In addition, the increase in construction needs and demands of the automotive industry has also played an important role.
Pakistan Steel Mills, a 100% government-owned private company limited by shares, is the largest integrated steelmaking plant in the country, with an expected production capacity of 1.1 million tonnes per year, with an integrated expansion potential of up to 3 million tonnes per year. The PSM is currently in loss and has been at a standstill since 2015.
Mr Soomro said that the production of the country’s mega industrial unit has remained on hold, but the current government has now risen to the challenge and decided to relaunch and revitalize it.
The minister said that due to the policies of the government in place, the construction industry is taking a remarkable step forward and because of this, the indigenous demand for steel and iron has increased dramatically.
The privatization minister said that the whole process was conducted with the utmost transparency and that all decisions were deliberated and approved by the board of directors and the federal cabinet and that the main objective of the government was to make the PSM operational again.
Posted in Dawn, le 24 September 2021