The federal government has decided to shut down Pakistan Steel Mills (PSM), a state-owned enterprise that has been experiencing substantial financial losses for years, according to a news report.
In a statement on Wednesday, the Secretary of Industry and Production said that the Sindh government has been offered to take over 700 acres of the total 19,000 acres of land of the PSM and establish its own steel plant on the site.
Last year, the secretary claimed, they found out that there was no buyer for the Pakistan Steel Mills. “Apart from 700 acres, the land will be used for industrial purposes”, he added.
Meanwhile, Chief Financial Officer (CFO) Arif Sheikh claimed that the federal government has decided to close down PSM due to its poor performance and financial losses.
The mill, which was established in 1974, has been facing financial difficulties for the past decade. The CFO claimed that the volume of PSM employees’ annual salary is Rs3.1 billion and in the last 10 years, the government has paid Rs32 billion in salaries.
Additionally, the mill has consumed Rs7 billion worth of gas in the last decade, Arif said, blaming ‘politically-influenced recruitment and permanent staffing’ for the sinking of the state-owned enterprise.
