Prime Minister approves bailout package for Pakistan Steel Mills
Islamabad, May 08, 2013 (PPI-OT): Prime Minister Justice (R) Mir Hazar Khan Khoso has said that the caretaker government has taken measures to rehabilitate Pakistan Steel Mills (PSM) so that it can contribute to the economic development of the country.
These observations were made by the Prime Minister during a meeting held at Prime Minister House today to review a proposal for bailing out Pakistan Steel Mills
The meeting was attended by Shahzada Ahsan Ashraf Shaikh, Minister for Production, Dr. Shahid Amjad Chaudhry, Advisor to PM on Finance and senior officials of Prime Minister’s Secretariat.
During the meeting it was decided that the federal government would provide guarantees to scheduled banks for raising Rs. 11 billion for Pakistan Steel Mills to meet its working capital requirement.
The meeting was told that PSM is working below its production capacity and with the availability of additional Rs. 11 billion; PSM will be able to attain its production capacity of 50% to 60% within six months and full capacity in due course, which will help reduce its losses.
It was also decided that Rs. 11 billion will be deposited in a separate escrow account which will be opened for this purpose. Also that all revenues generated from the sales would be deposited in the same escrow account
The meeting also decided that Standard Operation Procedures (SOP) will be introduced for operation of the account to ensure that salaries, pensions of employees of PSM are nor affected. The purpose pf opening the escrow account is to ensure that finances being provided to PSM are used for the intended purpose of rehabilitating the project.
The Prime Minister said that the care taker government has worked out comprehensive plan not only to rescue PSM but to put it on the path of recovery. He expressed the confidence that the management and workers will now put up efforts to turn the PSM around and make it a success.
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