Pakistan Steel Mills (PSM) has requested the government to immediate inject Rs17bn ($173.7M) worth of equity to restore the company’s choked supply chain.

PSM’s top management are reported to have approached the finance ministry for an immediate injection of the money as part of the financial package agreed to revive the mill. The mill is in such an acute position as not to be able to pay salaries to its employees for the past two and half months.

PSM CEO Saadat Cheema confirmed that a request for injection of Rs17bn of equity had been placed before the government to restore the supply chain. He said that it will improve the mill’s balance sheet.

He said that the Steel Mills was operating at just 14% output as opposed to the 70% considered necessary to move into profit. The previous government had been providing commercial loans, but now the management requests equity injection.

Source: Daily ‘The Express Tribune’, Karachi; 31 July 2013