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FED GOVT REMINDED OF COMMITMENT: Sen. Haider shows concern over dismantling of Twariqi Steel

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Karachi. 2.3.2016: Pakistan People’s Party (PPP) Sindh chapter General Secretary Senator Taj Haider has expressed deep concern over the fact that Steel production in the Country had been brought down to Zero through a systematic plan to promote the interests of the steel importers lobby. The closure of Pakistan Steel Mills by cutting down the Gas supply in violation of earlier decisions of the Government on the very day when it had reached a production capacity of 65 percent is now being followed by the dismantling of Twariqi Steel Mills Ltd.
Senator Taj Haider said that Twariqi Steel Mills with a production capacity of 1.28 Million tons of Steel per year is a foreign investment made in Export Promotion Zone in Karachi. In its trial production 2 years back it had operated at 100 percent capacity when the Gas supply to the Mills was stopped by illegally imposing GIDC on the project and by not finalizing the competitive rates of gas supply as was agreed when the foreign investments were being made.
Having suffered heavy losses for 2 years the sponsors are forced to start dismantling the plant and to shift it to another country in order to meet their commitments to the financing banks, he added.
The backward and forward foreign investments in the project come to more than 1.2 billion dollars. These start from mining of iron ore in Baluchistan to making billets, rolls and steel alloys, he said, adding that the subject of Gas is an item of the Federal Legislative List Part 2 and any decisions on the rates at which gas is to be supplied to the Mills and the applicable taxes can only be taken on the forum of CCI.
The dismantling of a state of the art foreign investment project in steel due to Government’s going back on its commitments would be tragic and send a negative signal to all investors who want to increase our production capacity, commented Senator Haider.
Senator Taj Haider demanded that besides restoring Gas supply to Pakistan Steel Mills the Federal Government in consultation with the Government of Sindh should immediately start negotiations with the sponsors of Twariqi Steel Mills and ensure that the Mills is not dismantled and starts production of steel at an early date.

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