AVN Report
ISLAMABAD: Cabinet’s Economic Coordination Committee (ECC) has empowered the Finance Division to approve the disbursement of projected net salaries of the Pakistan Steel Mills (PSM) employees for the initial six months of the 2023-24 fiscal year, besides reviewing the economic indicators and food prices in the country.
The approval was accorded in the recent ECC meeting chaired by the interim Finance Minister Dr Shamshad Akhtar, recently convened to deliberate upon pressing economic matters.
In the meeting, the Ministry of Industries and Production drew attention to PSM’s ongoing financial challenges, persisting since 2008-09, culminating in a staggering loss of Rs206.068 billion as of June 30, 2022.
The government has been financially aiding employee salaries since 2013. With production operations halted since June 2015, PSM faces severe financial constraints in meeting salary commitments.
Due to workforce reductions, monthly salaries have decreased from Rs360 million to approximately Rs104 million. The salaries will be paid from from the previously allocated budget of Rs10 billion.
The ECC was briefed on critical economic indicators and the pricing of essential food items. It directed the Ministry of National Food Security and Research to furnish regular reports on the availability, consumption, and pricing of key commodities, notably wheat and sugar. This step aims to facilitate ECC oversight in tracking the availability and pricing of these vital commodities.
Furthermore, the ECC instructed the Ministry of Planning, Development, and Special Initiatives to collaborate with chief secretaries to curb unjust profiteering and maintain reasonable differentials between wholesale and retail prices of essential food items and consumer goods.
The Ministry of Energy presented a summary concerning the transition from the London Inter-Bank Offer Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR). Following deliberation, the ECC directed the ministry to compile a comprehensive analysis of the financial implications of this transition for further review and endorsement in the upcoming ECC session.
The meeting was attended by ministers, advisors, and senior officers from the departments concerned.
These decisions underscore the government’s commitment to tackling economic challenges, bolstering vital industries, and ensuring price stability for essential commodities.
