Cash-strapped Pakistan Steel manages to pay salaries

Sunday, May 16, 2010
By Salman Siddiqui

KARACHI: After a delay of almost two weeks, Pakistan Steel Mills (PSM) on Friday finally advised banks to release salaries of its 17,000 employees.

The PSM authorities have also submitted a proposal to the Ministry of Industries, requesting a Rs25 billion bailout-package to ensure its smooth operations.

“Salaries are being paid from the sale proceeds of products and employees may draw their salaries on Monday, May 17,” said PSM public relations officer Hafeez Shaikh. The PSM requires about Rs650 million to pay the salaries every month, he added.

The PSM employees get paid by third of every month, but this time around, the liquidity crunch delayed payment of salaries.

Zafar Khan, General Secretary of Pakistan Steel Labour Union, said that employees would get less-salaries this month, as authorities were unable to pay the house-rent because of the liquidity crunch. On an average, officers are given around six to seven thousand per month on account of house rent, while workers get Rs11-12 thousand, he added.

Fazlullah Qurashi, Chairman, Board of Directors, PSM said that the Mills submitted a proposal to the Ministry of Finance on Friday, May 14, requesting it to provide Rs25 billion bailout package to bring the Mills out of financial crisis and run it properly.

Another official said that payment of salaries has been arranged, but PSM remains in a dire need of a bailout package. He said at present, PSM was running at 20-25 per cent capacity owing to financial restraints.

Zafar Khan, General Secretary of Pakistan Steel Labour Union, said that several hundred employees have written letters to Chief Justice of Pakistan, requesting him to look into the corruption committed by the previous management. They requested the CJ to take a strong action against culprits.