Pakistan Steel runs out of coal
Karachi: The production capacity of Pakistan Steel is fluctuating between two to five per cent as the mills are without coal since May 2013.
A PS spokesperson, M Shazim Akhtar, said that the mills had already made long-term agreements from Australia and Canada till 2014, but it cannot procure coal due to cash crunch.
A shipload of 50,000 tonnes of coal costs $10 million.
The PS has stocks of local iron ore for over two months. Due to non-availability of coal, the mills are currently procuring coke through tenders to keep the mills running at a very low capacity.
He said workers and staffers got the last salary for Oct 1-15 period which means that workers still need to get at least three months salary, starting from Oct 15, 2013 to Jan 15.
The government on Thursday ordered payment of 45 day salaries to the staff of the PS, but refrained from pledging any major financial support for its turnaround.
One month take home salary expense of over 16,000 employees comes to Rs480m.