Pakistan Steel Mills faces closure as govt halts gas supply
The Ministry of Industries and Production has directed the authorities of Pakistan Steel Mills to discontinue the supply of gas to the steel plant, effectively rendering the revival efforts of Pakistan Steel Mills futile.
According to a notification issued by the Ministry of Industries and Production, the chief executive officer of Pakistan Steel has been instructed to halt the supply of gas to the Pakistan Steel plant, reported Express News on Sunday.
They have been informed that following the decision taken in the Economic Coordination Committee's meeting on May 23, the responsibility for gas obligations of Pakistan Steel will not be with the federal government after June 30.
The circular stated that gas supply to important parts of Pakistan Steel's plants, including blast furnaces, was severely restricted since June 2015, with the aim of preventing significant components like blast furnaces from being completely closed.
Gas pressure was reduced for the first time in January 2015, although the factories of Pakistan Steel were operating at 50% production at that time, on March 10, 2015, when the production rate was raised to 65% gas pressure.
It was further reduced on June 10, 2015, due to which billions of rupees in losses were incurred for Pakistan Steel.
Moreover, due to the reduction in gas pressure, it was kept at a venturi meter to maintain the life of machinery and equipment. After the issuance of the circular, it has been removed after nearly nine years.
Pakistan Steel had estimated losses of Rs 22.4 billion as of June 30, 2023, while gas obligations reached Rs 33.5 billion.
The assets of Pakistan Steel amount to Rs 83 billion, while during the fiscal year 2023-24, it faced a loss of Rs 6 million per hour due to the constant presence of accounts.
It is worth mentioning that the foundation of Pakistan Steel was laid by former Prime Minister Zulfikar Ali Bhutto on December 30, 1973.
The design of the Pakistan Steel Mills, which has the capacity to produce 2.2 million tons of steel, was also given a 12% shareholding in 2009.
Pakistan Steel Mills employees have said that its closure and the decision to build an export processing zone in its place have been made without their consultation or consent.
Provided by SyndiGate Media Inc. (Syndigate.info).