Abdul Ghani

In a major step toward reviving Pakistan's flagship industrial enterprise, the government has released Rs1.36 billion to settle the long-pending dues of the retired employees of Pakistan Steel Mills (PSM). According to documents available with Wealth Pakistan, the allocated amount covers gratuity, provident fund, and leave encashment payments.

The disbursement is expected to conclude in the current month, providing the long-awaited financial relief to hundreds of retired employees. According to documents, 899 employees remain on PSM’s payroll, with salaries being financed through the government loans to sustain operations and maintain essential functions while restructuring continues.

In an effort to protect this precious state enterprise, the mills management has intensified its anti-theft campaign, registering 26 FIRs and making multiple arrests linked to copper and other material thefts. The recovered materials will be auctioned off to generate revenue and offset operational losses.

The enterprise has recovered 20 acres of encroached land, and plans to reclaim an additional 38 acres in collaboration with the local administration. These assets will be reintegrated into the industrial use under the government’s broader strategy for state-owned enterprise revitalization.

Though production at PSM remains halted since 2015, the government’s consistent focus on financial cleanup, land recovery, and employee settlements is widely viewed as a foundation for future industrial revival. It is noted that successive governments have explored various revival models, including public-private partnerships and restructuring initiatives, to restore the mills viability.

Spread over 18,600 acres in Karachi, the enterprise also includes Gulshan-e-Hadeed Housing Project, developed for employees in multiple phases since 1986. The current reform plan focuses on clearing liabilities, recovering encroached land, and enhancing accountability mechanisms.

Policymakers view the revival of the mills as a strategic economic priority—one that could reduce steel imports, generate jobs, and support the construction and manufacturing sectors, both key drivers of Pakistan’s industrial growth.

Credit: INP-WealthPk