Pakistani finance ministry declines bail out package for PSM
Tuesday, 03 Nov 2009
It is reported that Pakistani finance ministry has declined to give bail out package of PKR 10 billion to pull out Pakistan Steel Mills from financial loss.
Ministry of Finance has informed PSM management that government of Pakistan cannot give it any bail out package therefore PSM should make planning for improvement of the situation through its own resources.
The PSM has started considering many options including sale of 5000 acre surplus land owned by it.
Sources said that PSM owned 19000 acres land while plant was installed on 6000 acre land, 5000 acre was allocated for residential scheme and 2000 acre land was allocated for industrial park. This way 5000 acre land is left surplus with the PSM. PSM can acquire over PKR 20 billion through its sale. PSM had suffered loss to the tune of PKR 22 billion during 2008 and it is overburdened with loans of PKR 33 billion.
