Russian delegation to discuss new steel mill on PSM site

ISLAMABAD: A Russian delegation is scheduled to visit Pakistan this month to discuss the establishment of a state-of-the-art steel mill on the existing site of Pakistan Steel Mills (PSM). This development involves dismantling the current structure; an official informed the subcommittee of the National Assembly’s Standing Committee on Industries and Production on Friday.

If an agreement is reached, the new mill will occupy 700 acres of the PSM’s 19,000-acre site, with the land allocated by the government for this purpose, official said.

On Friday, the Ministry of Industries and Production submitted a report to the National Assembly, stating that Pakistan has not yet entered into formal discussions about restoring PSM. However, following a meeting between President Asif Ali Zardari and Russian officials on April 4, 2024, where Russia offered assistance for PSM, Pakistan is also considering establishing a new steel mill.

The report highlighted that a Memorandum of Understanding (MoU) signed in 2003 between Pakistan and Russia aimed to revive and expand PSM, leading to an agreement with Tyazhpromexport Russia. This company helps foreign countries with the design, construction, and modernization of metallurgical plants and related enterprises. Another MoU in 2013 involved a request for a $1 million credit facility from Russia.

Naz Baloch highlighted the distressing conditions reported by the 2,200 employees, including the disconnection of essential services such as gas and water, and the cessation of medical facilities. She said that the standing committee’s next meeting is planned for Karachi, where senior police officers, public representatives, and labor union members will be invited to discuss the situation in detail and ascertain the factual position.

Acting CEO of the mill Additional Secretary ministry of industries and production Asad Mahni, who has been temporarily appointed to oversee the mill, was present during the proceedings.

Abdul Hakeem Baloch voiced concern over the attitude of the mill’s CEO and CFO, noting they did not respond to phone calls or messages. Baloch accused them of breaching privileges and criticized their actions, stating that with their authority, they have disconnected utilities and expelled 149 employees.

Acting CEO Asad Mahni said, “These 149 people were on contract, while 600 were daily wagers, and they were terminated on my order.” He added that the Public Accounts Committee (PAC) questioned why these employees were retained since the mill has been closed since 2015. He noted that two major theft gangs have been arrested, and actions are being taken against them.

Regarding the non-payment of pensions to retired employees, CFO Arif Sheikh said the mill is pursuing the case for those who retired from November 2021 to June 2024. He noted that they have requested Rs1.8 billion from the Finance Division to cover the outstanding pensions.

MNA Mahesh Kumar said that employees are involved in the billions of rupees worth of theft from the steel mills. He emphasized the desire to run and revive the mill. Kumar also inquired about the status of the cadet college located within the steel mills. Additional Secretary and Acting CEO Asad Mahni said they will soon advertise for the appointment of a principal for the cadet college, with plans to select a retired military officer.