The Economic Coordination Committee (ECC) on Wednesday approved the termination of all employees of the Pakistan Steel Mills (PSM) after it approved golden handshake scheme.

As per details, the decision was taken in a meeting chaired by Adviser to the PM on Finance Abdul Hafeez Sheikh. Under the scheme, some 9,350 employees will be fired within a month and another 250 will be let go within three months.

Last month, the Ministry of Industries and Production (MoI&P), in its summary stated that due to the poor financial condition of PSM, the government has been paying net monthly salaries to PSM'S employees since 2013.

PSM stopped its commercial operations in June 2015 without formulating any Human Resource (HR) plan of its 14, 753 employees. The number of PSM employees has declined to 9,350. Presently, the per month net salary bill of PSM employees is approximately Rs 350 million, adjusted as a loan in the financial accounts of PSM. Since, 2013, aggregate loan of Rs 34 billion has been extended to PSM by GoP on account of net salary payment.

Whereas, PSM's total expenses on its employees for FY 2018-19 were recorded at Rs 9.54 billion that is 74.7 billion of total production and operating expense.

The ECC move will not be finalized until it is approved by the federal cabinet.