In a decisive move, the federal government has announced the permanent closure of the state-owned Pakistan Steel Mills (PSM) following unsuccessful attempts to privatize the struggling entity.
In a statement released today, the Secretary of Industries & Production disclosed that the Sindh government has expressed interest in establishing its own steel mill. To facilitate this initiative, the federal government has proposed offering approximately 700 acres of land.
The financial strain imposed by PSM has been significant, according to PSM’s Chief Financial Officer. He revealed that the annual financial burden of the mill’s employees amounts to Rs. 3.1 billion. Over the past decade, Rs. 32 billion has been disbursed in salaries, while gas consumption has cost an additional Rs. 7 billion.
The CFO attributed the mill’s financial collapse to a combination of political appointments and the decision to regularize temporary employees, which together exacerbated the institution’s fiscal woes.
In a related development, the government plans to lease 4,000 acres of PSM’s land to establish a Special Economic Zone, aiming to attract investment and promote economic growth in the region.
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