| GEO Business|
| Staff regularization to mount PSM financial woes|
| Updated at: 2013 PST, Friday, May 07, 2010|
KARACHI (Raja Kamran): Suffering from financial deficit and corruption, Pakistan Steel Mills (PSM) has regularised the services of over 4,000 temporary employees which is feared to further add to the financial burden of the cash strapped organization.
PSM posted losses in July 2008.
The report of the Auditor General noted 75 objections according to which PSM incurred a loss of Rs39 billion till February 2010. Itís outstanding dues against bank loans amount to Rs40 billion and for which it has to pay Rs4 billion as interest.
The cash-strapped PSM will have to bear an additional expenditure of Rs1 billion as a result of regularization of employees against their salaries and perks.
The production activity has almost come to a halt in PSM and the government is mulling over granting Rs20 billion as bailout package to PSM.