Islamabad: The Economic Coordination Committee (ECC) has approved the termination of all employees of the Pakistan Steel Mills (PSM) after giving a go ahead to the golden handshake scheme. The final decision in this regard will be taken by the federal cabinet.
The decision was taken in a meeting chaired by Advisor to Prime Minister on Finance Abdul Hafeez Sheikh. Under the golden handshake scheme, some 9,350 PSM employees will be terminated in a month’s time, while another 250 will be let go of in the next 3 months.
The decision is meant to relieve off the extra expenditure, that the government has to pay, in the form of employees’ salaries every month – as the mill’s production has remained shut since June 2015.
Since June 2015, the number of PSM employees has declined from 14,753 to 9,350 at present. The government has been paying an amount of PKR 350 million in terms of salaries. The amount is adjusted as a loan in the PMS’s financial account.