He said the PSM, (set up 25 years back in Karachi with the help of former Soviet Union), had been running in colossal losses of Rs 19 billion for past many years due to political interference by previous governments, now started making profit in last two years as a result of corrective measures for restructuring taken by President General Pervez Musharraf.
He told radio-press conference that economic and industrial growth in the country in last few years led to a turnaround of Pakistan Steel, which enabled clearing Rs 12 billion bank loans.
However, Rs 7 billion interest on these loans was still to be paid. The Mill's cumulative losses of Rs 7.5 billion will be wiped out in one year, he said, adding: "Our financial position is very good with equity of Rs 7 billion this year."
The PSM chief said currently, revamping, overhauling and maintenance of the Steel Mill was underway to increase annual production to 1.5 million tonnes, adding the capital repair of siltering plant was completed.
Recently, scrap steel was disposed of for Rs 1.6 billion in transparent tender, he said.
He said the MoU was signed with Russia, the framework agreement with China, and talks with Ukraine on increasing annual production of the Mill to 3.3 million tonnes.
The final decision on production expansion will be taken after evaluating aid, interest-free or less interest loan from Pakistani banks and technical offers from these countries, he added.
The PSM chief said international consultants were also being appointed to prepare technical feasibility for expansion and diversification of production at the Mill.
Lieutenant General Abdul Qayyum (Retd) said the Steel Mill with 13,000 staff plus 1,800 on daily wages was geared to meet challenges of future, including World Trade Organisation (WTO) regime from January 2005, through cost effectiveness, price competitiveness, and acquiring raw material like iron ore locally. About 400 engineers were inducted recently under policy of rationalisation of manpower.
"The WTO regime is bad for developing states as it will be difficult for them to compete with developed countries", said PSM chairman.
He said new dealership has been frozen at the Mill in order to check corruption, adding: "Our tendering system is being made transparent according to World Bank's standards. The cost of our products is less than landed price of those imported."
Answering a question, he blamed hoarders for creating crisis in the country by artificial price increase of steel billets in past few months, saying the situation was now under control and at present, products being sold at Rs 38,000 to Rs 40,000 per tone.
He said Pakistan Steel's share in domestic industry was 25 percent, while the rest met by scrap and imported products.
He said a leading Saudi group would set up billets plant in vicinity of the Steel Mill with investment of $100 million, which will exclusively for export.