ANNOUNCEMENT 07 Sep 2013In September 2013, the government of Pakistan announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
The Tribune - Pakistan:
Press release 25 April 2014
26 September 2014
28 February 2015 - Official news
17 June 2015
29 January 2016
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.