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Pakistan Steel Re-Rolling Mills Association concerned over suspension of power to the industry and fears layoffs if power not restored immediately

Lahore, July 14, 2014 (PPI-OT): The Pakistan Steel Re-Rolling Mills Association (PSRMA) has shown grave concern over suspension of power to the industry and feared massive layoffs and unrest if power is not restored immediately.

In a statement issued here Monday, PSRMA Chairman Asmat Pervaiz and Patron Chairman Hafiz Muhammad Akbar said that Steel Re-Rolling industry in Punjab is passing through a crisis-like situation due to unavailability of electricity and gas that is a prime raw material for the steel sector.

They said that because of heavy taxation in budget 2014-15, the steel industry is already in deep crisis and struggling for survival.

They said that the government would have to announce a special package to save the dying steel sector besides ensuring provision of regular supply of electricity.

They said that it was very unfortunate that steel industry in Punjab has no electricity while gas is being provided for round about one day a week while situation in other parts of the country is quite different.

PSRMA has pointed out every year that element of discrimination in electricity and gas supply to the Punjab must be stopped and distribution of gas supply must be in accordance with the size of industry and not according to the area of province.

“When the industry in Punjab is paying a considerable amount of revenue to the exchequer, its protection is also the responsibility of Federal government.”

It is submitted that closure of power supply to the around 500 steel units in Punjab has also resulted in total closure of 28 dependent industries of Steel Sector to whom raw material is being provided by the Re-Rolling industry. These industries include agricultural implements, sewing machines, surgical instruments, tractor spares, power looms, electric fan and appliances, light engineering, housing and construction etc.

The closure of industry due to suspension of electricity would deprive millions of workers attached with Steel sector which would cause unrest in the country. It is very surprising that at one side the government is trying to create opportunities of employment and on the other hand adopting the policies which render unemployment for those who are on job. This is treated as anti industry policy and even is not in favour of the government itself.

Pakistan Steel Re-Rolling Mills Association urged the concerned high ups to save the industry of Punjab from total disaster and also save millions of workers and their families from starvation.

For more information, contact:
Mohsin Ali Naqvi
Pakistan Steel Mills Corporation (PVT) LTD.
Pakistan Steel Bin Qasim
Karachi 75000
Tel: +92 – 21 -9 9264222 +92 – 21 – 34750271
Cell: 0300-4483558
Fax: +92 – 21 -34750156
Email: info@paksteel.com.pk

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