Business Recorder reported that the Pakistan government has approved a bank guarantee of PKR 6 billion for Pakistan Steel Mills to ensure working capital of the company and directed the management to empower the board of directors of the corporation.

Sources told Business Recorder that Cabinet Committee on Restructuring presided over by Finance Minister Dr Abdul Hafeez Sheikh was informed that the commercial banks were not ready to lend money to the PSM because of its financial condition.

The PSM management sought help from the government in this regard.

An official said that the finance Minster asked the management to take necessary steps to empower the board of directors in decision making for the better governance in the company. At present, the chairman of the company is more powerful than the board in decision making.

The minister also directed the PSM high ups to make the Business Plan more viable and bring it to the next meeting with more bifurcation and clarity.

The meeting also considered various recommendations for improvement in working of PSM and a comprehensive presentation based on 'Business Plan' was made to the CCOR.

(Sourced from Business Recorder)