The federal government has announced the permanent closure of the state-owned Pakistan Steel Mills (PSM) following unsuccessful attempts to privatize the enterprise.
In an official statement, the Secretary of Industries & Production disclosed that the Sindh government has expressed interest in establishing its own steel mill. For this purpose, approximately 700 acres of land have been offered.
The Chief Financial Officer of PSM detailed the significant financial burden imposed by the mill’s operations. He revealed that the annual cost of maintaining the mill’s employees stands at Rs. 3.1 billion. Over the past decade, Rs. 32 billion has been disbursed in salaries, and gas usage has amounted to Rs. 7 billion. The CFO also attributed PSM’s financial collapse to thousands of political appointments and the regularization of temporary employees.
In addition to the closure, the government plans to lease 4,000 acres of PSM land to establish a Special Economic Zone, aimed at fostering economic growth and development in the region.
The decision to shut down Pakistan Steel Mills marks a significant shift in the country’s industrial landscape, highlighting ongoing challenges in the management and sustainability of state-owned enterprises. The government’s move to repurpose the land for a Special Economic Zone indicates a strategic pivot towards leveraging industrial assets for broader economic benefits.