ISLAMABAD: The Ministry of Industries and Production submitted a report to the National Assembly, revealing that the production at Pakistan Steel Mills has been halted since June 2015.
The report presented in the National Assembly stated that despite having a steel production capacity of 1.1 million tonnes, Pakistan Steel Mills has not produced any steel since 2015. The report highlighted that Pakistan’s steel industry also benefits from contributions by the private sector, with over 600 large and small mills collectively having a manufacturing capacity of 3.3 million tonnes as of 2019. “Even with a resurgence, Pakistan Steel’s current production capacity is insufficient to meet the nation’s steel needs unless it undergoes revival and further expansion,” the report stated.
The report also mentioned that Pakistan Steel Mills remained on the privatisation list/programme from 2019 until October 30, 2023, when its privatisation process was annulled by the federal cabinet on the proposal of the Ministry of Privatisation. Consequently, Pakistan Steel Mills has now been delisted from the active privatisation programme.
The report further stated that during its 10th Apex Committee meeting held on May 25, 2024, the Special Investment Facilitation Council (SIFC), while finalising the purpose of the Pakistan Steel Mills land, decided that the existing loss-bearing Steel Mills should be scrapped. The following decisions were outlined in the report:
i. The Government of Sindh (GoS) will allow the usage of Pakistan Steel Mills’ land for general industrial purposes. ii. The Government of Sindh is to ensure the mutation of the remaining un-mutated land (1,683 acres) in the name of Pakistan Steel Mills. iii. The Ministry of Industries and Production is to ensure the clearance of encroached Pakistan Steel Mills land, resume possession, and notify a committee to oversee the matter. iv. The Ministry of Industries and Production is to present a comprehensive plan, including: a. The establishment of an Export Processing Zone (EPZ) or Special Economic Zone (SEZ) on the entire Pakistan Steel Mills land.b. The allocation/earmarking of land for the establishment of a new steel mill in conjunction with the Government of Sindh.c. A way forward on the already alienated Pakistan Steel Mills land.
The report concluded by stating that appropriate directions have been passed to the management of Pakistan Steel Mills and the Government of Sindh regarding the implementation of these decisions, and a committee has been constituted to oversee the removal of encroached land belonging to Pakistan Steel Mills.