The federal government has decided to permanently shut down the state-owned Pakistan Steel Mills (PSM) after unsuccessful attempts to privatize it. In a statement, the Secretary of Industries & Production revealed that the Sindh government has shown interest in establishing its own Steel Mill, with around 700 acres of land offered for this purpose.
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The Chief Financial Officer of PSM stated that the financial burden of the Mill’s employees is Rs. 3.1 billion annually. Over the past decade, an amount of Rs. 32 billion has been paid in salaries to employees. Additionally, the Mill has consumed gas worth Rs. 7 billion in the last ten years. He emphasized that thousands of political appointments and the decision to regularize temporary employees have contributed to PSM’s bankruptcy. The government also plans to lease 4000 acres of PSM land to set up a Special Economic Zone.
