The Chairman of Pakistan Steel Mills (PSM), Asad Islam Mahni, on Saturday revealed that the steel mill’s cumulative loss had reached Rs600 billion by 2024, with an annual interest payment of Rs20 billion. Mahni made these remarks during a briefing to the Senate Standing Committee on Industries and Production, which visited PSM’s Karachi facility to review its ongoing challenges.
The committee, led by Senator Aon Abbas, also included Senators Syed Masroor Ahsan, Khalida Ateeb, and Husna Bano. They discussed PSM’s financial difficulties, including mounting debts, delayed payments, and high operational costs, while also addressing concerns raised by the workers’ unions.
Mahni informed the committee that PSM owed Rs89 billion to the National Bank of Pakistan (NBP), with much of the loan used to cover employee salaries, including those of the company’s 934 current staff members. The committee was further briefed on two potential plans under government consideration for PSM’s future: one involving a revival through Russian Industrial Engineering LLC, which would utilize arch and blast furnaces, and the other exploring the possibility of liquidation following the hiring of an evaluation firm.
Additionally, the committee met with worker union representatives who expressed concerns about the difficulties faced by both retrenched and current employees. A sub-committee was formed to address employee grievances and to engage in further discussions with the management.
While the committee appreciated the management’s efforts to reduce PSM’s expenses, it expressed dissatisfaction over ongoing thefts at the facility and instructed authorities to evaluate the losses caused by such activities. The committee also recommended accelerating the liquidation of PSM’s moveable assets that are no longer functional.
Moreover, concerns were raised regarding the arbitrary allotment of PSM land by the Sindh government in recent years, specifically the distribution of 1370 acres and 400 acres of PSM’s undisputed land to local Goths. The committee urged that these allotments be referred to the Council of Common Interests (CCI) for further review.
During its visit, the Senate Standing Committee also toured various plants of the PSM and recommended that the government expedite decisions on the steel mill’s future.
