Pakistan Steel mills faced loss up to Rs.86.27billions. Pakistan Steel Rs86.27 a hundred million yuan bear huge losses, the government rule in the last story does not stop there, the rampant corruption and inefficient industrial giants can lead to the closure of the end of September.
This photograph shows the Ministry of Industry and Economic Coordination Committee of production ( ECC ) 8 of the Cabinet held on 22 May, before the meeting to submit a report , according to sources.
Reported that the state mills from 2009 to 2012 four Rs40.507 billion bailout to provide value , but despite its losses stacked 30 June 2013 Rs86.27 billion, while liabilities increased RS98 .57 billion , generating a negative equity position .
Currently , the plant is operating at 11% capacity , and to provide working capital can not support the operation after September . If money is not immediately available, the plant will close by the end of September, leading to cost Rs56.55 billion .
As the State Bank of Pakistan ( NBP) has refused to provide more loans mill, to determine the fate of privatization decisions taken during the interludes , until you receive the full and finalized offer. Rs28.49 billion in a single batch in August proposed injection.
The report says , rolling the current sad state of affairs, because of rampant corruption , inefficiency, excessive use and the indifference of the government in its revival.
The report also shows that the permanent workers at the plant in 2010 , 4800 people were absorbed as daily tasks salary RS1 billion in annual operating expenses of the financing costs for the first year to join RS2 billion .
The ministry also said that the rescue plan by the government to give purely commercial loans at exorbitant prices , they emit such small quantities and irregular intervals , therefore, accumulated losses and accrued liabilities exceeded.
There are three options to deal with the difficulty of the plant. First, the plant can be liquidated, it will save the government from any future liability costs Rs39.855 a hundred million settlement.
Second, the status quo can not be maintained, it will cost Rs57.25 hundred million U.S. dollars over the next 15 months. Third, the mill can be privatized , which will take 15 to 18 months.
During the episode , there are other options, including the stop operation until the privatization of Rs56.55 a hundred million yuan cost.
Turnover is an option. Should make serious efforts on equity of the company through the financial costs and the repayment of a portion of the injection. It will cost the government Rs28.49 billion . In this case , privatization will get better prices than other options.
However, the program shows ECC , both unrealistic and unsustainable , will not grind to solve problems . Instead , a closer examination of the case to achieve the best solutions in the public interest.
ECC requirements of the Ministry of Industry and Production revisit the issue in consultation with all stakeholders , and at the next meeting to make a workable plan.
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