The PTI-led federal government of Pakistan is seeking an investment from the country’s private sector in the Pakistan Steel Mills (PSM) after deciding to fire all its employees.
Hammad Azhar—the Federal Minister for Industries and Production said on Thursday that the federal government of Pakistan is looking to restructure the debts and hand over core operations of the Pakistan Steel Mills to the private investors to help revive it.
According to the details, the machinery and equipment installed on 1,800 acres will be privatized, while the 18,000 acres will remain the property of the government of Pakistan. So far, as many as fifteen parties have reached out to the government of Pakistan in this regard.
A package of Rs20 billion has been prepared by the government for the employees and each of them will be given at least Rs2.3 million as golden handshake. There are 9,350 employees who will be fired within a month and another 250 will be let go within three months.
It is pertinent to mention here that though the Steel Mills have been closed for years, they are running a Rs550 billion deficit and billions are being spent on debt servicing.