| GEO Business|
| Rs10b bailout package approved for PSM|
| Updated at: 1916 PST, Tuesday, January 12, 2010|
ISLAMABAD: The Economic Coordination Committee (ECC) has approved bailout package of Rs10 billion to pull Pakistan Steel Mills (PSM) out of the financial crisis.
In the ECC meeting held in Islamabad, Ministry of Industry and production approved the rescue package under which PSM will be provided Rs10 billion on the guarantee of government from National Bank of Pakistan (NBP) and a consortium of banks.
The PSM will get Rs8 billion from the NBP and the consortium of banks will provide remaining Rs2 billion.
It may be noted that PSM was a profitable organization till June 2008 and it had over Rs10 billion in its accounts but financial mismanagement resulted in losses of worth Rs30 billion till June 2009 while total loss of PSM has reached to Rs40 billion.