Restructuring: PSM receives first tranche of Rs4.2b

Two L/C’s for procurement of coking coal, each of 55,000 tons, amounting to Rs1.5 billion have also been opened.

KARACHI:

The Ministry of Finance has released Rs4.2 billion – its first tranche of the restructuring package of Rs18.5 billion – to Pakistan Steel Mills (PS) on Wednesday. The amount is the first tranche of the approved restructuring package of Rs.18.5 billion from the Pakistan government.

The government has also issued pay slips for two months’ salaries (February 2014 and March 2014) for all employees.

Moreover, two letters of credit (L/C’s) for procurement of coking coal, each of 55,000 tons, amounting to Rs1.5 billion have also been opened. The remaining amount will be utilised for payment of utility bills, capital repairs and disbursement of payment to suppliers. As news for the payment of salaries was floated a wave of happiness ran among all PSM employees. The management is confident that with the release of the first tranche, the mill’s production would improve and help in meeting the target set by the government.

Published in The Express Tribune, May 22^nd, 2014.

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