The Finance Division has announced the provision of a loan of Rs. 5.7 billion to Pakistan Steel Mills (PSM) Karachi for the payment of dues to its employees.
A statement by the Finance Division read that the Economic Coordination Committee (ECC) had approved the payment of the dues on 30 September 2020.
The loan is recoverable in 20 years with interest, besides a five-year grace period for the recovery of the principal amount.
PSM’s administration had also announced on 30 December 2021 that the dues of retired officials before the date of 29 June 2020 had been paid, and that the dues after 30 June 2020 would be paid on 7 January 2021.
PSM had been running on losses, with no hope of recovery, and the ECC had approved loans for the mill in September 2020.
As of 31 December 2020, PSM had accumulated losses of Rs. 217.5 billion and total liabilities of Rs. 307 billion.
