The Board of Directors (BoD) of Pakistan Steel Mills (PSM) has strongly opposed the government’s decision to permanently close the steel mills, stating that the cabinet has been misadvised. Chairman of the BoD, Aamir Mumtaz, has expressed these concerns in a detailed letter addressed to the Prime Minister, President, Finance Minister, Chairman Standing Committee, and Secretary of the Special Investment Facilitation Council (SIFC).
In his letter, Mumtaz highlighted that recent media reports suggest the government’s decision to shut down Pakistan Steel Mills permanently. He asserted that the cabinet has been ill-advised on this matter and criticized the decision-making process for bypassing critical consultations with the board and other industry and economic experts.
“The decision-making process overlooked critical consultations,” Mumtaz stated. “The directive from the SIFC and Cabinet to carry out consultations and explore all revival options was evaded.”
Mumtaz emphasized that the proposals submitted by the Pakistan Steel Board were disregarded, and no formal dialogue was held with the board. He described the decision as hasty and lacking the necessary caution for a high-profile national asset like Pakistan Steel.
The decision to close PSM has faced strong opposition and concern from various stakeholders, including government allies, industry experts, and employees. They criticized the lack of transparency and consultation in the decision-making process.
Mumtaz argued that closing the mills does not address or reduce annual losses, as approximately 90 percent of the losses are due to finance or interest charges on liabilities. He suggested that these accumulated liabilities could be resolved through a comprehensive liability settlement exercise without completely closing the mills.
“Pakistan is far behind in large-scale manufacturing and requires more such industries,” Mumtaz pointed out. “Closing and liquidating Pakistan Steel Mills cannot be justified when there is a need for a more substantial industrial base in the country.”
He warned that closing PSM would exacerbate unemployment issues and stressed the need to invest in reviving large-scale manufacturing industries like PSM to generate economic activities and job opportunities. Mumtaz also highlighted the risks of misuse and plunder of PSM’s land assets if the closure proceeds without proper analysis and a viable plan.
“There is no public support for closing Pakistan Steel,” Mumtaz added. “The people of Pakistan want to see a reduction in losses, revival, and further investment in this business to generate economic activities and job opportunities.”
In conclusion, Aamir Mumtaz urged the government to focus on addressing PSM’s liabilities, reviving the mills, and maintaining large-scale manufacturing capabilities in the national interest rather than resorting to closure. He called for the decision to be reversed in favour of more positive planning, warning that shutting down the mill would have severe economic and social consequences.
