Abdul Ghani

Pakistan Steel Mills (PSM) has made significant strides in improving its operational efficiency and cutting costs, saving Rs265.43 million in two years, reports Wealth Pakistan. According to an official document, this impressive figure comes after the implementation of key workforce rationalization and accountability measures that have targeted unnecessary positions and addressed issues of employee misconduct.

In a bid to streamline its workforce, the management decided not to extend the contracts of unnecessary human resources, which included 567 daily wage workers and 149 contractual employees, effective June 30, 2024. This move resulted in annual savings of Rs244.47 million. By eliminating redundant positions, the PSM has been able to optimize its human resources, ensuring that personnel are allocated where they are most needed for the company's growth and efficiency.

Additionally, in response to the concerns about ghost employees and absenteeism, PSM introduced a biometric attendance system on October 4, 2024. This system aimed to enhance accountability and ensure that employees were regularly attending work. As a result, 36 employees resigned due to the stricter attendance protocols. This action brought in annual savings of Rs17.66 million, further emphasizing PSM’s commitment to operational integrity and transparency.

A decisive action was taken against two employees who were found to have submitted bogus degrees after verification from Karachi University. The employees were dismissed, and the case was referred to the Federal Investigation Agency (FIA) on September 30, 2025. This move resulted in additional savings of Rs0.81 million annually, reinforcing the organization’s policy of ensuring only qualified individuals hold key positions.

Another significant cost-saving measure was the cancellation of excessive leave for 23 employees, some of whom were found to be working for other companies and industrial units while on leave from PSM. As a result of this action, four employees resigned, leading to annual savings of Rs1.97 million. This decision was another step toward ensuring that PSM’s workforce was dedicated and fully engaged in its operations. Furthermore, one employee was found working simultaneously for PSM and the Sindh Education Department.

The employee was dismissed from PSM on June 17, 2025, and the case was referred to the FIA on September 12, 2025. This discovery resulted in savings of Rs0.52 million annually and reinforced PSM’s policy against dual employment. Through these strategic measures, PSM has not only saved substantial costs but also reinforced its commitment to accountability, good governance, and operational effectiveness. These efforts have set the stage for the organization’s future growth and sustained success.

Credit: INP-WealthPk