ECC approves Rs18.5bn restructuring plan for PSM

ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) here on Thursday approved Rs18.5 billion restructuring plan for the Pakistan Steel Mill (PSM). The ECC of the Cabinet, met under Federal Minister for Finance, Senator Ishaq Dar at the Prime Minister's Office, also decided to impose 25 per cent regulatory duty on export of potatoes with effect from May 5. The plan for PSM envisages achieving 77 per cent capacity of the PSM till June 2015. Muhammad Zubair, Chairman Privatisation Commission informed the ECC that at this stage, the PSM was functioning at 3-6 per cent capacity due to shortage of funds and it was not possible for the plant to run for a long period at this capacity. He said that the possibility of finding a strategic partner for PSM also looks remote. Zubair concluded that there is an urgent need to focus on its restructuring in order to get a better price of the public asset. He informed that the ministry of Industries, management of PSM and the privatization commission were on the same page regarding the restructuring plan. Finance Minister Dar on the occasion said that the CEO of PSM should be confident and assured the forum that the anticipated results will be achieved with the restructuring plan. The management of PSM assured the ECC that with the implementation on the plan, PSM will be able to pay all their liabilities and with operational capacity around 77 per cent, they will earn a monthly profit of Rs38 million onward from January 2015. Hike in potato prices The ECC also considered a summary of the ministry of national food security and research on artificial hike in the prices of potatoes in the market. The ECC was informed that hoarding and profiteering has led to increase of potatoes price locally which should be in the range of Rs30 per kg. The finance minister said that it was the collective responsibility of the federal and the provincial governments to protect consumers, adding that manipulation in prices of essential commodities will not be allowed. He added that three days were given to the hoarders and middlemen to release the supply of potatoes in the market but it seems that the government will need to take appropriate measures to stabilise the prices. The ECC on the recommendation of Minister for National Food Security and Research, Sikandar Hayat Bosan decided to impose 25pc regulatory duty on export of potatoes with effect from May 5. It was further decided that there will be zero duty and levy on import of potato from May, 5 till July 31 and the measure will help in bringing potato prices at rational level in the market before and during the month of Ramzan this year. Wheat donation to FATA, KP displaced The ECC also approved the summary of ministry of national food security and research for donation of 26,000 metric tons of wheat to WFP for dislocated population of FATA and Khyber Pakhtunkhwa. This will be a gift from the government of Pakistan to the IDPs to be distributed through WFP. The federal government will incur Rs832 million for donation of wheat. The ECC also approved, in principle, a summary of the ministry of industry and production for allowing utility stores corporation to procure sugar directly from the domestic sugar mills without the involvement of the trading corporation of Pakistan. The ministry of finance will provide credit line support to the USC. The TCP was directed to maintain their stocks upto 50,000 tons in future and to supply their over and above stocks to the USC from the current inventory of around 200,000 tons. The meeting was also attended by Minister for Industries and Production Ghulam Murtaza Khan Jatoi, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, Minister for Science and Technology Zahid Hamid, Minister for National Food Security Sikandar Hayat Khan Bosan, Minister for Textile Industry Abbas Khasn Afridi, MOS for I.T & Telecom Anusha Rehman Khan, federal secretaries and senior officials of the government.