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Freedom given to Pak Steel in pricing of products slated.

Freedom given to Pak Steel in Pricing of Products Slated

Chairman, Pakistan Steel Rerolling Mills Association, Akber Abdullah has expressed his deep resentment at the carte blanche given to Pakistan Steel by the Economic Coordination Committee of the Cabinet (ECC) in pricing its products.

In a statement he feared that this concession bound to be misused sooner than later. He said that in ordinary circumstances it might have been the right thing to do but Pakistan Steel burdened with 80 per cent surplus staff and administrative shortcomings could hardly be expected to base its prices simply in accordance with the market requirements. To achieve breakeven, it will be tempted to load its prices substantially on one pretext or the other. It is primarily for this reason that price control should have continued, he added.

He claimed that Pakistan Steel prices of M.S. billets remain high even after it had achieved 88 per cent capacity utilization. Even the C&F prices of billets were more favourable than their prices, he said and added that any further rise in prices would start a chain reaction in the prices of other raw materials which will destabilise the already depressed market for re-rolled products.

He strongly demanded that Pakistan Steel should not be allowed unrestricted freedom in the pricing of its products until the surplus staff is profitably disposed of.
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Title Annotation:Pakistan Steel Rerolling Mills Association
Publication:Economic Review
Date:Feb 1, 1991
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