Sub-working group to explore avenues for co-op with China

ISLAMABAD: The Ministry of Industries and Production (MoI&P) has convened a meeting on Wednesday to constitute a sub-working group of iron & steel on industrial cooperation.

The meeting will explore avenues of cooperation between China & Pakistan in the field of iron & steel and promote joint ventures in the two sub-sectors.

The meeting will evaluate the present situation, achievements and contributions of the steel industry including Public Sector Enterprises and highlight the key issues/gaps that affect the industry.

It will recommend measures for making the industry internationally competitive in terms of cost and quality.

An official told Business Recorder the participants will assess the requirement of raw materials and inputs including coal, their likely supplies from indigenous sources and from imports and examine the need for foreign acquisition of crucial raw materials.

“The joint working group will also assess possibilities of zoning or prioritization of iron ore resource bearing areas as belts for speedy exploitation of proven and economically viable iron ore deposits,” the official added.

It will examine the present investment, taxation and trade policies and review the actual realization of private investment (including FDI) and suggest structural changes in a way that enables high risk venture capital to flow into the sector along with state-of the-art-technology, and project investment of at least 10-15 years thereafter.

Talking to Business Recorder, Pakistan Steel Mills (PSM) Stakeholders Group, convener, Mumraz Khan accused Ministry of Industry & Production, being administrative Ministry and its Secretary being principal Accounting Officer, of being responsible for the PSM destruction by appointing ruling party’s men of choice.

He said, MOI&P has failed to monitor the performance of the successive managements which cost the nation more than $ 10 billion from 2005 to 2018. The incumbent government should investigate PSM as a case study from 1985 to 2018 and determine the causes of Mills inability to achieve 2.2 million ton capacity per year.

“PSM in its 35 year history was operational for 23 years and incurred losses in 10 years that were more than Rs 465 billion (including payable debts liabilities) as on August 31, 2018 compared with Rs 10 billion accumulated profit as on June 30, 2008,” Mumraz Khan revealed.

PSMC, stakeholders’ letters addressed to MOI&P remained unnoticed which amounts to criminal negligence, Khan added.

“We understand that MOI&P and Federal Board of Revenue are under the influence of steel importers mafia (consumers enjoying the concessionary SROs, unjustified benefit compared with commercial importers),” he alleged.—MUSHTAQ GHUMMAN