PSM employees: approval may be granted to payment of salaries

Economic Co-ordination Committee (ECC) of the Cabinet, in its next meeting, is likely to approve payment of Rs 1.920 billion at the rate of 480 million per month for payment of salaries to Pakistan Steel Mills (PSM) employees from December 2013 to March 2014, sources close to Secretary Industries and Production (MoI&P) told Business Recorder.
PSM is facing different challenges among which financial crisis is on the forefront at present. The situation has reached a point where PSM has been unable to generate salaries for its employees on its own from July, 2013 onward. MoI&P in its summary of January 13, 2014 highlighted the situation in detail along with options in hand to determine the future of PSM. The ECC after detailed deliberations on the summary made certain decisions.
According to sources, Ministry on its part is actively pursuing the implementation of the decisions and in this connection, a draft revival plan prepared by PSM, has been forwarded to Privatisation Commission. PSM has also initiated the process to obtain loans without GoP guarantees in accordance with the decision of the ECC.
"Since salaries from December 2013 onward have not been paid yet therefore, there is unrest amongst the employees. In the recent past, the employees blocked the National Highway for several hours and the Commissioner Karachi was also apprised of the alarming situation which can be exploited beyond proportion," the sources continued. The sources further stated that there are apprehensions that the interruption in payment of salaries may lead to violent agitation at any point of time in future.
"To avoid any untoward incident that may occur due to non payment of salaries, appropriate measures need to be taken for an early release of salaries for the month of December, 2013 to March, 2014," the sources further added. MoI&P has already shared the facts/ situation with the Ministry of Finance in a letter written on February 11, 2014: "MoI&P has also requested Finance Division to develop a mechanism to ensure the disbursement of salaries to PSM''s employees on regular basis till the privatisation / revival plan is finalised and implemented". The sources said PSM is also going through the private parties'' offers of raw material in lieu of finished products.