Govt decides to privatize Pakistan Steel Mills to steer it out of losses
ISLAMABAD: Minister for Industries and Production Hamad Azhar on Thursday said the government had decided to privatize the Pakistan Steel Mills (PSM) in order to revive and steer it out of losses.
“Fifteen parties have shown their interest in the Pakistan Steel Mills,” he said while addressing a news conference in Islamabad.
He clarified that only the core Steel Mills operation would be privatized and not the other land of the entity.
Hammad Azhar said that the employees of the Pakistan Steel Mills will be relieved in two phases with payment of their retirement dues and one month salary.
He said the government had been paying 34 crore rupees a month to its employees in addition to the debt on it and its interest.
The matter would be next discussed in the federal cabinet meeting, he maintained.
The Economic Coordination Committee (ECC) on Jun 3 approved to give golden handshake to all employees of the Pakistan Steel Mills.
The meeting of the committee chaired by Adviser to Prime Minister on Finance Abdul Hafeez Sheikh said that the steel mill was not productive for last several years and employees had not much work to do, hence there was no reason to carry on with it.
250 out of 9,350 total employees would be let go in three months, while rest of the employees would be given golden handshake.
The ECC has approved Rs18 billion for the employees, which is equal to Rs2.3 million per employee.
Sources said that the government will take approval from the Supreme Court regarding giving the employees golden handshake.