IMF inquires about PSM bailout use

KARACHI: The International Monetary Fund (IMF) on Wednesday asked the management of Pakistan Steel Mills (PSM) how it will use the new bailout package, a PSM official said.
The IMF delegation, during a meeting with the PSM chief executive officer Zaheer Ahmed Khan, asked him about the utilisation of the recently proposed bailout package worth Rs6.3 billion, said PSM spokesman Shazim Akhtar.
He said the Economic Coordination Committee of the Cabinet will take up the issue of new package requested by the management from the federal government in the next meeting.
The three-member IMF delegation, comprised of Tokhir Mirzoev, resident representative IMF, Tasleem Alam, senior economist and Muhammad Ali, administrator officer IMF, called on PSM chief.
A PSM statement said the new package includes Rs4 billion for paying salaries and utility bills and import of raw material. Another Rs2.3 billion is needed for major repair work and buying backup parts.
The PSM sought Rs1 billion for paying utility bills for two months, Rs1 billion for paying salaries for two months, Rs400 million to pay gratuity and provident funds, Rs1.7 billion for import of raw material, and Rs2.3 billion for major repair work and buying backup parts.
The spokesman said the IMF delegation also inquired about the previous bailout package of Rs18.5 billion.
Under the last package, the management was to increase production to 77 percent by March this year. However, its production remained low at 22 percent on an average for the period from July 2014 to April 2015.