PSM unlikely to get bailout package amount

KARACHI - Pakistan Steel Mills might not receive the amount announced in the bailout package by the government as the finance division has asked PSM to give security about the payback of the money fearing that PSM could use the money for retiring its liabilities. The Nation has learnt that PSM has been embarrassed by this stance of the finance division because the board of PSM lately has paid visit to Iran for future deals of iron ore supply and has also floated an open tender for buying iron ore and coal. The PSMs delegation that visited Iran was comprised upon CEO Malik Israr, Director Finance, Director Commercial, General Manager Bulk Material and they held a meeting after their visit on 23rd this month in which the issues were discussed to put up with the finance division in the scheduled meeting on 3rd of coming month, sources informed. The PSM board in its meeting with the fiancT division on 3rd of the following month would discuss the release of Rs 10 billion of bailout package, along with the future plan and the board would also assure them that PSM will not retire its liabilities from this amount, sources informed. The current government has never come up with something concrete for PSM and only changed its management for 3 times, yet of no avail, as the financial condition of PSM has deteriorated much and could not sustain by the simple announcements of bailout packages, sources reasoned. Moreover, the business deals of PSM are also likely to be lapsed soon by dint of stalemate from both the government and PSM, which has also created serious concerns among the employees of the PSM as their hopes of getting their dues are getting vanished, sources added. One main reason of the PSMs likely lapses of future trading deals is the reluctance of PSM management for future trading as the current international economic instability results in the fluctuation of prices, sources informed. And if the PSM management faces fluctuation of prices of its deals, the Federal Investigation Agency (FIA) might consider it crime and held the management accountable for that, the sources said. Similarly, this deteriorating financial condition of PSM has also made the administration of the mills not to remove the difference of house rents of its officers that was part of agreement between PSM and its CBA in 2008. The government will not afford the closure of PSM, yet hesitant to issue the money announced in the bailout package and has made it conditional fearing the mills could not be able to payback the government, which now resulted in stalemate and has put a question mark over the future of PSM, sources maintained.