President Arif Alvi has sanctioned Rs11 billion for Pakistan Still Mills as a loan to pay remaining 90% dues to the retired employees of the government-owned steel mills, the finance division said in a letter on August 26.
The letter was written to the accountant general of Pakistan and it said the loan was sanctioned in compliance of the decision of the cabinet’s Economic Coordination Committee.
“The loan will be recoverable in 20 years along with a grace period of five years for recovery of principle amount. The interest will be chargeable at the prevailing rate for the respective year,” read the letter.
The finance division has requested the accountant general of Pakistan to authorize the State Bank of Pakistan to credit over Rs11 billion to Pakistan Steel Mills account at the National Bank of Pakistan.
In June, the Economic Coordination Committee had approved firing all employees of the Pakistan Steel Mills.
The committee had reasoned that the mills have not been functioning for years and the employees haven’t been doing anything.
Though the Mills have been closed for years, they are running a Rs550 billion deficit and billions are being spent on debt servicing.