KARACHI: To pay four-month salaries of workers and to purchase raw material, the Pakistan Steel Mills (PSM) management has decided to ask the federal government for a Rs4.5 billion bailout package.
According to PSM Spokesperson Shazim Akhtar, the steel mill is already in crisis due to almost zero production following reduced gas pressure since June 10. He warned that the reduced gas pressure would cause water leakages from the furnace coolers leading to extensive structural damage and may shut down the plant completely.
He said that from Rs18.5 billion bailout package approved in April 2014, Rs9 billion allocated for raw material was utilised accordingly and Rs9.5 billion was still available in the inventory as steel slabs/finished products.
PSM’s average capacity utilisation for the outgoing fiscal year stood at 25 per cent, in spite of the frequent power outages, reduced gas pressure and shortage of water supplies, besides four months delay in receipt of funds for materials, he added.
