Pakistan Steel Mill

Pakistan Steel Mill has provided Rs58bn in bailout packages since 2008-2009.

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Since 2008-2009, the Government of Pakistan has paid Rs58 billion to Pakistan Steel Mills in the form of five bailout packages, which the Center informed the Supreme Court of Pakistan on Tuesday. The union, via the Ministry of Industry and Development, sent a study on the PSM to the apex court.

The study claimed that the PSM had ceased its commercial activities in June 2015 without drawing up a human resource program for its 14,753 employees.

It said that the number of employees dropped to 8,884 in 2019, of which 2,233 were officers and 6,651 were workers. The Government shall pay Rs355 million for the monthly net salary of the employees of the PSM, excluding the components of the leave encashment, the grant fund and the gratuity. It also revealed that the Government has so far made a total of Rs34.01 billion available as a net salary for employees. In addition, the federal government also paid Rs. 1,266 billion to families of deceased employees on compassionate grounds.

The court was also informed that, in 2018, the federal government formed an expert group calling for professional recommendations for the revival of the Pakistan Steel Mill. The group recommended, in particular, that the government establish a public-private partnership to raise the necessary capital investment and to obtain technical expertise for the successful regeneration and expansion of the mills.

It was also proposed that the government create a strategic advisory committee to establish an acceptable mechanism accompanied by a open multinational competitive bidding procedure to pick the favored bidder and introduce a liability compensation scheme.