The Economic Coordination Committee (ECC) on Wednesday approved firing all employees of the Pakistan Steel Mills (PSM).
The decision regarding the fate of the lifeline of the country’s industrial growth was taken by ECC after years of deemed dysfunctional. The economic coordination committee has fired all Pakistan Steel Mills employees as they were observed doing nothing for years. The mill has not been functioning for several years that is why 9,350 employees have been approved by the ECC to be fire. The whole job termination of 9,350 employees will take a time of a month and the other 250 employees are to be fired within three months.
Abdul Hafeez Shaikh the PM’s Adviser of Finance and Revenue chaired a meeting of Economic Coordination Committee where the decision took place. The committee also approved rupees 20 billion gold handshake package for the employees. It amounts to rupees 2.3 million per person.
The move will not be settled until it is approved by the federal cabinet. The national steel mill has been closed for many years and they are running 550 billion rupees of the shortfall, also billions have been spent on debt servicing. The whole situation became managabl for the government. The same solution was also considered by the previous PPP and PML(N) regimes but somehow that could execute the plan. If the package is approved, per person will get 2.3 million.
However, PSM stopped its commercial operation in 2015 without constituting any Human Resource (HR) plan for its 14,753 employees which nows stands at 9,350. The per month net salary bill of Pakistan Steel Mills employees currently stood at around 350 million rupees which is now been adjusted in the financial accounts of PSM. A collective loan since 2013 of rupees 34 billion rupees as had been extended to PSM by the government on account of the net salary payment.
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