Pakistan government has directed the Pakistan Steel Mills Corporation PSMC management to prepare financial impact of the possible Golden Handshake Scheme GHS and Voluntary Separation Scheme VSS or other benefits for its employees and officers at the earliest. The PSMC management has been directed to play an active role in negotiations with unions and officers’ associations for smooth completion of privatization process of the PSMC early next year

These decisions were taken at an inter-ministerial committee’s meeting held here recently to discuss and agree on the action plan for resolution of critical issues concerning privatization of the PSMC.

The PSMC will repay Rs.8.5 billion government of Pakistan’s guaranteed or extended loans to the federal government before its privatization. The PSMC will arrange around Rs 3 billion credit from commercial banks to meet its post-privatization cash shortfall after payment of the government of Pakistan loan.

The ministry of finance will arrange out-of-court settlement between the House Building Finance Corporation and the PSMC on the HBFC’s Rs 440 million loan claims against the PSMC, and it will also adjust Rs 260 million NAB recovered amount against PSMC loans to the government of Pakistan.