Pakistan Steel Mills’ financial woes have escalated, with total losses now reaching a staggering Rs. 600 billion. The breakdown reveals that the steel mills alone have accumulated losses of Rs. 224 billion, while the burden of outstanding payments stands at Rs. 335 billion. These alarming figures were disclosed during a meeting of the National Assembly’s Standing Committee on Industries and Production, chaired by Syed Hafeezuddin. Chief Financial Officer Muhammad Arif reported that 305 acres of steel mills' land have been encroached upon, with debts totaling Rs. 258 billion owed to the federal government and the National Bank—Rs. 102 billion to the bank and Rs. 156 billion to the government. Federal Minister Rana Tanveer raised concerns over ongoing theft at Pakistan Steel Mills, signaling a lack of proper oversight. The meeting also discussed the development of special economic zones on approximately 5,000 acres of steel mills’ land. Of this, 700 acres are earmarked for the Sindh government to accommodate the existing plant.

There is a proposal to introduce China-style economic zones on the remaining land. Rana Tanveer further revealed that international companies, including those from Russia, have expressed interest in operating the steel mills, but the federal government currently lacks the capacity to revive the facility. He stressed that the steel mills need to pay Rs. 6 billion annually for gas, with Rs. 2 billion allocated solely for the furnaces. He assured that the land sold will not be used for housing societies. Committee member Abdul Hakeem Baloch highlighted the sharp reduction in the steel mills’ workforce, which has dropped from 9,000 to just 2,000 employees, reflecting the severe decline in operations. In response to these revelations, a sub-committee was formed under the leadership of Naz Baloch to investigate the ongoing issues at Pakistan Steel Mills and propose actionable solutions.

Credit: Independent News Pakistan