Senate panel urges swift decision on PSM’s future as losses hit Rs600bn

KARACHI: The Senate Standing Committee on Industries and Production, chaired by Senator Aon Abbas, visited Pakistan Steel Mills (PSM) in Karachi to review ongoing challenges related to debts, delayed payments and expenditures, while also hearing concerns from employee unions, stated a press release on Saturday.

The committee, including Senators Syed Masroor Ahsan, Khalida Ateeb and Husna Bano, held discussions with PSM Chairman Asad Islam Mahni and other officials.

Mahni informed the senators that PSM had suffered cumulative losses of Rs600 billion by 2024 and continues to pay Rs20 billion annually in interest on outstanding debt. He added that PSM owes Rs89 billion to the National Bank of Pakistan, which primarily funds salaries for its 934 employees.

Officials briefed the committee on two possible future paths for PSM: revival through Russian Industrial Engineering LLC using arc and blast furnaces, or liquidation through an evaluation firm.

Union representatives highlighted the difficulties faced by both current and retrenched employees. While the committee appreciated management’s efforts to reduce expenditure, it expressed concern over recurring thefts at the mill and urged an evaluation of related losses. It also recommended speeding up the disposal of non-functional and outdated moveable assets.

The committee voiced strong reservations about the arbitrary allotment of PSM’s land by the Sindh Government, particularly 1,370 acres and 400 acres reportedly allotted to Goths. It suggested that such matters be referred to the Council of Common Interests (CCI).

Following a tour of various PSM facilities, the committee urged the government to expedite its decision regarding the mill’s future.