ECC approves Rs 8.6bn bail-out package for Pakistan Steel

Picture of Pakistan Steel Mill - File Photo

ISLAMABAD: Economic Coordination committee (ECC) on Tuesday approved for 8.6 billion rupees bail-out package for Pakistan Steel Mills (PSM), DawnNews reported.

The ECC meeting, headed by Finance Minister Abdul Hafeez Sheikh, was held in Islamabad.

ECC discussed summary regarding financial assistance for the PSM moved by Ministry of Production.

ECC was informed that the PSM has been facing loss since 2008 and currently working at a very low capacity of 15%.

While keeping in view difficulties faced by the PSM and the previous Cabinet Committee on Restructuring (CCOR) decision, ECC approved financial package of Rs.8.6 billion for PSM including mark up for fiscal year 2013.

ECC also approved disbursement schedule for PSM formulated by CCOR.

According to the package, the repayment schedule of 5 billion and 120 million rupees debts of the PSM would be rescheduled while the interest on the debts would be paid by the federal government.

The government has also raised the credit ceiling for the PSM to three billion rupees.

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Comments (4) Closed

Tanvir

Jul 24, 2012 03:17pm

I hope that the Government has made a wise decision after seeing a plan from the Pakistan Steel Mill on how it will improve its operations and the quality of its products for recovering from such major losses. Otherwise, this bail-out will end up as another scam to fill the coffers of the corrupt one at the high level.

Recommend 0

Abdullah Hussain

Jul 24, 2012 01:07pm

Steel Mill is considered a backbone of a country. Pakistan fortunately is amongst the countries blessed with a steel mill of such a big magnitude. Had we managed the steel mill properly Pakistan would have been listing amongst steel exporting. There are several countries who do not have locally produced raw material yet they are big exporter of steel products. Since the very beginning Pakistan Steel Mill was orphaned by its operator, all they did was extreme corruption. These corrupt peoples made responsible to run the steel mill in fact minted money to fill their ever hungry stomach. These are the peoples worst than termite. Shame on them.

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mohammad

Jul 24, 2012 01:19pm

we must construct steel mills in other cities. that is the need of the hour. our politicians are settling their score instead of focussing on development. we HAVE BEEN GIFTED WITH A RICH NATION BUT INSINCERE LEADERS. ALLAH WILL ASK THEM. ONE DAY WE HAVE TO ANSWER BEFORE HIM.

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faisla

Jul 25, 2012 07:01am

steel mill can play a vital role in the development of Pakistan economy.The government should support it from all aspects.

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