Pakistan Steel Mills shuts down after financial struggles

The federal government of Pakistan has taken the decision to shut down Pakistan Steel Mills (PSM), a state-owned enterprise that has been experiencing significant financial difficulties for an extended period. The Secretary of Industry and Production has announced that out of PSM's total land of 19,000 acres, 700 acres will be offered to the Sindh government to establish its steel plant. The closure of PSM comes after no potential buyers were found for the struggling steel mill.

With the Sindh government set to receive 700 acres, the rest of the land will be repurposed for industrial use. The Chief Financial Officer (CFO) of PSM, Arif Sheikh, has attributed the closure to the mill's poor financial performance. Since its establishment in 1974, PSM has faced financial challenges, with employee salary expenses amounting to Rs3.1 billion annually. Over the past decade, the government has reportedly spent Rs32 billion on employee salaries.

The decision to close down Pakistan Steel Mills marks the end of an era for the state-owned enterprise. The move aims to address the financial losses that have plagued PSM for years and pave the way for the efficient utilization of its assets. By repurposing the land for industrial purposes and offering a portion to the Sindh government, the government is taking steps towards revitalizing the steel sector in Pakistan. This decision underscores the importance of financial sustainability and strategic planning in the management of state-owned enterprises.