KARACHI: On Wednesday, the Ministry of Finance has released Rs4.2 billion – its first tranche of the restructuring package of Rs18.5 billion – to Pakistan Steel Mills (PS).
Throughout Rs960 million was expended in earning two-month salaries of 15,600 employees. The Rs4.2bn is the initial tranche of the restructuring package of Rs18.5bn approved by the government.
Additionally, two letters of credit (L/C’s) for procurement of coking coal, each of 55,000 tons, amounting to Rs1.5 billion have also been afforded. The remaining amount will beutilizedd for payment of utility accounts, capital repairs and disbursement of payment to suppliers. As news for the payment of salaries was floated a wave of happiness was given among all PSM employees.
PSM management is confident with the passing of the first tranche of the approved package, production of the mill would start improving to achieve the objectives set by government.
The Steel Mills is covering a deficit of Rs115bn and currently production hovers over three to five per cent.