The Industries and Production Ministry has prepared a summary to bailout Pakistan Steel Mills (PSM) with a package of Rs20 billion. The summary would be presented at the next meeting of Economic Coordination Committee (ECC) of the cabinet for approval.
In addition, the ministry has made a special request to the Ministry of Finance for the opening of letter of credit for the purchase of raw material for the Mills worth Rs3 billion. The Finance Ministry has been asked to direct the National Bank of Pakistan to open the letter of credit.
It was pointed out that non opening of letter of credit was having a negative impact on the production capacity of PSM and any further delay would complicate the situation. The previous government had also ordered the National Bank of Pakistan to open Rs 3 billion letter of credit for import of raw material which could not be implemented.
Meanwhile, the CEO of Pakistan Steel Mills Saadat Cheema said that payment of three months’ salary to 16,000 employees of the PSM was a major and immediate challenge. He regretted that the previous government gave step motherly treatment to the Mills.
