Minister for Industries and Production Ghulam Murtaza Jatoi on Thursday told the Senate that an amount of Rs 3 billion was required to clear the dues of gratuity to ex-employees of Pakistan Steel Mills (PSM) up to 30-06-2015.
In a written reply, Ghulam Murtaza said there was no pension scheme for the PSM employees as they were entitled to gratuity at the time of retirement/leaving the corporation. He said officers had become entitled to gratuity after completion of five years service of the corporation at the rate of one month basic pay for each year of service.
The minister said that unionized staffs were entitled to gratuity after completion of three years service of the corporation at the rate of one month gross pay for each year of service.
The Gratuity Fund Trust was in place for managing the gratuity schemes by the trustees and union members and management representatives, the minister added.
Due to severe financial crisis faced by the corporation, he said, the government was making net payments of monthly salary to PSM employees and gratuity fund contribution was not being paid by the government. Ghulam Murtaza said that Pakistan Steel had paid gratuity fund to its entitled ex-employees up to April, 2013.
To another question, the minister said that presently ministry of industries and production did not deal with the special package for the revival of sick industrial units.
However, the finance division has informed that a comprehensive law titled “The Corporate Rehabilitation Bill” had been drafted by the Securities and Exchange Commission of Pakistan (SECP), the ministry of finance.
Murtaza said the matter was actively under consideration of the government and the SECP to evolve consensus and finalise the Corporate Rehabilitation Law.
The minister said the Senate standing committee on finance and revenue discussed Corporate Rehabilitation Bill, 2015, in its meeting held on July 28, 2015.
The committee had decided to grant a time period of eight months to the SECP for finalisation of the draft Corporate Rehabilitation Law in consultation with all the stakeholders, he added.
