The government has released Rs 1.366 billion to settle long-pending dues of 411 retired employees of Pakistan Steel Mills (PSM), marking another step in its ongoing efforts to reform the state-owned enterprise.
According to documents available with Wealth Pakistan, the allocated funds cover gratuity, provident fund, and leave encashment payments. The disbursement process is expected to be completed within October, offering long-awaited financial relief to retired workers.
While production at PSM has remained suspended since 2015, officials said the government continues to focus on clearing financial liabilities, reclaiming encroached land, and strengthening accountability mechanisms as part of the broader restructuring plan.
Documents further revealed that 899 employees remain on PSM’s active payroll, with their salaries being financed through government loans. These funds help sustain essential operations and administrative functions while the mill’s restructuring process continues.
To safeguard its remaining assets, the PSM management has intensified its anti-theft campaign, registering 26 FIRs and making several arrests related to copper and other material thefts. The recovered materials are to be auctioned to generate revenue and offset operational losses.
In parallel, the enterprise has successfully recovered 20 acres of encroached land and aims to reclaim an additional 38 acres in coordination with local authorities. These reclaimed assets will be reintegrated for industrial use under the government’s wider state-owned enterprise revitalization program.
Spanning 18,600 acres in Karachi, Pakistan Steel Mills also includes the Gulshan-e-Hadeed Housing Project, developed for employees in multiple phases since 1986.
Policymakers regard the revival of PSM as a strategic economic goal that could reduce reliance on steel imports, create employment opportunities, and strengthen Pakistan’s construction and manufacturing sectors — key drivers of national industrial growth.
