Govt approves Rs11.44b payment to PSM employees

Amount will given as loan which will be repayable in 20 years


Irshad Ansari August 29, 2020
A man walks past machines at the hot strip mill department of the Pakistan Steel Mills (PSM) on the outskirts of Karachi, Pakistan. PHOTO: REUTERS/FILE

ISLAMABAD:

The federal government has approved the release of Rs11.44 billion for payment of the dues of retired employees of Pakistan Steel Mills (PSM).

The money will be given to the PSM management as a loan, which will be transferred to the PSM account through the State bank of Pakistan (SBP).

In this regard, the finance ministry has issued a letter to the accountant general of Pakistan Revenue after approval from the Economic Coordination Committee (ECC). After getting the funds, the process of payment to the employees will start.

According to the finance ministry, the money will be paid to the steel mills in the form of loan, which will be repayable in 20 years. An additional period of 5 years will also be given for refund of the amount, including interest.

The rules have been relaxed for the payment and approval has been given for release funds from the budget for 2020-21. The funds will provide relief to 90% retired employees of PSM in terms of payment of dues, including gratuity and provident fund, pending from 2013.

Losses of the PSM have reached Rs230 billion as the mill remains closed since 2015.

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