There are several loss-making SOEs in the country as the National Flag Carrier Pakistan International Airlines and Pakistan Steel Mills. Photo: Reuters
Islamabad:
The government has released RS1,366 billion to clear the quota for 411 retired employees in Pakistan Steel Mills (PSM).
According to documents available with Wealth Pakistan, the awarded amount covers gratuity, Provident Fund and leave with encapsulation payments.
The payment is expected to end within the month of October, giving the long -awaited financial relief to the retired employees.
According to the documents, 899 employees still remain on PSM’s payroll, where wages are financed through government loans to PSM to maintain operations and maintain significant functions while the restructuring of the plant continues.
Meanwhile, in an attempt to protect this precious state business, management has intensified its anti-theft campaign, registered 26 FIR’s and made several arrests associated with copper and other material theft.
The recovered materials will be auctioned to generate revenue and offset operating losses. The company has also recovered 20 hectares of obtaining land and plans to regain an additional 38 hectares in collaboration with the local administration.
These assets will be reintegrated in industrial use during the government’s wider strategy for state -owned company’s revitalization.
Although the production at PSM remains stopped since 2015, the government’s consistent focus is considered on economic clean -up, land extraction and employee settlements to a large extent as a foundation for future industrial resuscitation in the country.
The current Reform Plan focuses on clearing obligations, recovering land and improvement mechanisms.
The company is scattered over 18,600 hectares in Karachi and also includes the Gullshan-E-Haded Housing Project, developed for employees in several phases since 1986.
Politicians consider the revival of the mills as a strategic financial priority that can reduce steel imports, generate jobs and support the construction and manufacturing sectors.
