A meeting of the Economic Co-ordination Committee (ECC) of the Cabinet is likely to approve two months' salaries of the Pakistan Steel Mills (PSM) employees today (Tuesday). Sources said Finance Minister Ishaq Dar has convened a meeting to approve payment of two months' salaries as Eid-ul-Fitr is approaching fast. Sources maintained PSM employees were last paid for December-January and since then they have not been paid. February to June 2016 (six months), employees salaries are overdue.
The government's plan is to layoff daily wages and contractual employees - around 700, 483 daily wages and 229 contractual - from July 2015 to bring down the salary expenditure to around Rs 390 million. However, overall perception in the ministries is that government's sell-off agenda is on the back burner after the Panama papers.
The PSM has been non-operational since June 2015 after Sui Southern Gas Company Limited (SSGCL) suspended its gas supply to the Mills. Sources said the PSM issues have been pending between federal and provincial government from October 2015 when Cabinet Committee on privatization decided to offer PSM to Sindh government along with all assets and liabilities. Conflicting statements on the issue are being made by the federal government and Sindh accusing each other of the delay in privatising PSM.
The centre accuses Sindh of not responding to the offer to purchase PSM while Senator Taj Haider on behalf of Sindh stated during a meeting of Standing Committee that Sindh wrote a letter to the federal government seeking a discussion on issues pertaining to details of losses, agreements and issue of regulatory duty before taking any decision on the government's offer but have yet to receive a response.
Chairman of the Senate Standing Committee on Finance Saleem Mandviwala stated during the committee meeting that the Centre has no plans for the revival of Pakistan Steel Mills, which remains non-operational since June 2015. The ECC is also expected to take up revised Ramazan Package for the Utility Stores Corporation with the possibility that some proposals not on the agenda, as usual, may be presented to the participants during the meeting.