The Ministry of Finance has released an amount of Rs 960 million to Pakistan Steel Mills (PSM) for payment of salaries. The PSM employees were facing a real hard time in holy month of Ramadan as they had not been paid salaries for the last four months. Therefore, on the request of the PSM management, the federal government has released funds for the payment of salaries. The said amount was approved in Economic Co-ordination Committee (ECC) of the cabinet meeting held under the chair of Finance Minister Senator Ishaq Dar on 17th June, 2015.
According to Shazim Akhtar, a spokesman for the PSM, the released amount will be utilised to disburse the salaries for the month of March and April, 2015 to all the employees of the enterprise.
Presently, the country's largest steel producing plant is facing difficulties to maintain appropriate production due to gas shortage and other technical issues. The suspension of gas supply since 10th June 2015 has already made steel making and rolling of slab impossible and now the only remaining producing unit ie blast furnace is also at the risk of severe damage and ultimate closure due to gas supply stoppage.
The PSM management has also urged the Ministry of Petroleum and Natural Resources to instruct the SSGC in the national interest to normalise gas pressure to the PSM to save the plant. The PSM closure will leave the Pakistani Industry at the mercy of imports causing a huge cost to the national exchequer in foreign exchange, the spokesman said.
He said that an almost closed steel plant was revived after the government approved a bailout package of Rs 18.5 billion in April 2014 and brought into production. The PSM achieved 27 percent CAPU 6 to 8 months after four years. It achieved some 50 percent on 7th January 2015 and 65 percent on 10th March 2015 before gas pressure was reduced.
H said that the Pakistan Steel management is thankful to the Ministry of Finance, Ministry of Industries and Production, Privatisation Commission and all the other stakeholders for playing their positive role.
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