Technical supplementary grant: MoF to give Rs 288 million to PMTF for payment of salaries

The Finance Ministry has decided to extend Rs 288 million to chronic loss-making Pakistan Machine Tool Factory (PMTF) through technical supplementary grant from overall surrenders during current fiscal year, sources close to Secretary Industries and Production told Business Recorder.

Sharing the details, sources said, a summary was submitted by the Ministry of Industries and Production on April 22, 2020 for approval of the ECC with the recommendation to provide financial assistance of Rs 288 million to Pakistan Machine Tool Factory (PMTF) as supplementary grant for the payment of salaries from October, 2019 to June, 2020. While considering the summary, the ECC directed Secretary Finance to sort out the issue regarding payment of outstanding salaries to the employees of PMTF in consultation with Secretary Industries and Production and submit their reports with viable recommendations to the ECC in its next meeting.

In pursuance of the ECC decision a meeting was convened in Finance Division on May 5, 2020 wherein detailed discussions were held between Secretary Finance and Secretary Industries and Production during which it was highlighted that PMTF has been facing losses since 2008-09. Resultantly, on approval of ECC, Finance Division has provided financial assistance to PMTF as a loan from time to time.

During FY 2019-20, Finance Division had released an amount of Rs 128 million to PMTF for payment of salaries as per the decision of the ECC held on August 28, 2019. It was further deliberated that supplementary grant is not a feasible option and expenditure of Rs 288 million may be met through overall savings before June 30, 2020.

Finance Ministry has proposed that Rs 288 million may be released for the payment of salaries from October 2019 to June, 2020 to the employees of PMTF through technical supplementary grant from overall savings/surrenders during CFY 2020.