IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 07 Sep 2013 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

On 7 September 2013, the Economic Coordination Committee (ECC) of Pakistan approved a Rs. 2.9 billion bailout for the Pakistan Steel Mills (PSM).
 
Out of the total bailout money, Rs.1.5 billion will be released in September 2013, Rs. 0.7 billion in October 2013 and Rs. 0.7 billion in November 2013. The ECC also decided that the PSM will remain a state enterprise but that a "strategic" partner will be found to better run it.
A bailout of Rs. 6 billion had earlier been provided for the Steel Mills on 1 December 2011 and a bailout of Rs. 8.6 billion on 24 July 2012.
 
Post September 2013 update - 
A bailout of Rs. 18.5 billion was approved on 25 April 2014.
A package of Rs. 529 million was approved on 26 September 2014 to cover import duties on iron ore. Further it was notified that PSM is allowed 3 months deferrment on payment of the sales tax and exemption from payment of adnvace income tax on import of iron ore. 
A package of Rs. 960 million was approved on 28 February 2015 for payment of employees' salaries for two months. 
A package of an undisclosed amount was approved on 17 June 2015 for the payment of employees' salaries for January and February 2015. 
A similar package for the payment of employees' salaries for two months was announced on 29 January 2016.
 
In total, then, PSM has been bailed out to the tune of Rs 36 billion (approximately 360 million US dollars).
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries. 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

331 Coke & semi-coke of coal, of lignite or of peat; retort carbon
2704 Coke and semicoke of coal, of lignite or of peat, whether or not agglomerated; retort carbon.
270400 Coke and semicoke of coal, of lignite or of peat, whether or not agglomerated; retort carbon.
346 Fertilizers & pesticides
3102 Mineral or chemical fertilisers, nitrogenous.
310210 Urea, whether or not in aqueous solution
310221 Ammonium sulphate
310229 Other
310230 Ammonium nitrate, whether or not in aqueous solution
393 Metal wastes or scraps
7204 Ferrous waste and scrap; remelting scrap ingots of iron or steel.
720421 Of stainless steel
720430 Waste and scrap of tinned iron or steel
720441 Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stampings, whether or not in bundles
720449 Other
411 Basic iron & steel
7201 Pig iron and spiegeleisen in pigs, blocks or other primary forms.
720110 Nonalloy pig iron containing by weight 0.5 % or less of phosphorus
7207 Semifinished products of iron or nonalloy steel.
720711 Of rectangular (including square) crosssection, the width measuring less than twice the thickness
720720 Containing by weight 0.25 % or more of carbon
412 Products of iron or steel
7208 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, hotrolled, not clad, plated or coated.
720810 In coils, not further worked than hotrolled, with patterns in relief
720827 Of a thickness of less than 3 mm
720836 Of a thickness exceeding 10 mm
720837 Of a thickness of 4.75 mm or more but not exceeding 10 mm
720838 Of a thickness of 3 mm or more but less than 4.75 mm
720839 Of a thickness of less than 3 mm
720840 Not in coils, not further worked than hotrolled, with patterns in relief
720851 Of a thickness exceeding 10 mm
720852 Of a thickness of 4.75 mm or more but not exceeding 10 mm
720890 Other
7209 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, coldrolled (coldreduced), not clad, plated or coated.
720915 Of a thickness of 3 mm or more
720916 Of a thickness exceeding 1 mm but less than 3 mm
720917 Of a thickness of 0.5 mm or more but not exceeding 1 mm
720918 Of a thickness of less than 0.5 mm
720926 Of a thickness exceeding 1 mm but less than 3 mm
720927 Of a thickness of 0.5 mm or more but not exceeding 1 mm
720990 Other
7211 Flatrolled products of iron or nonalloy steel, of a width of less than 600 mm, not clad, plated or coated.
721114 Other, of a thickness of 4.75 mm or more
721190 Other
7219 Flatrolled products of stainless steel, of a width of 600 mm or more.
721933 Of a thickness exceeding 1 mm but less than 3 mm
721934 Of a thickness of 0.5 mm or more but not exceeding 1 mm
721935 Of a thickness of less than 0.5 mm
721990 Other

Please report this page in case you detect an inaccuracy in its content.