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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.