KARACHI: Pakistan Steel Mills (PSM) has given salaries of two months (February and March) to all its employees after release of Rs4.2 billion from the Ministry of Finance.
Around Rs960 million was spent in clearing two-month salaries of 15,600 employees. The Rs4.2bn is the first tranche of the restructuring package of Rs18.5bn approved by the government.
Two letters of credit (LCs) to procure coking coal each of 55,000 metric tons amounting to Rs1.5bn have also been opened from this amount. The coal would be imported from Australia.
The remaining amount will be utilised to pay utility bills, capital repairs and to disburse payment to suppliers. Spokesman for the PSM, Shazim Akhtar, said the mill’s management hoped that production would improve after the release of the first tranche.
The Steel Mills is facing a deficit of Rs115bn and currently production hovers around three to five per cent.