The government of Pakistan has decided to permanently shut down Pakistan Steel Mills (PSM), a state-owned enterprise that has been struggling with severe financial losses for over a decade. The total losses incurred by PSM are expected to reach around Rs 600 billion (approximately 2.1 billion USD). This includes direct losses of Rs 224 billion (approximately USD 782 million) and a significant payment burden of Rs 335 billion (approximately USD 1.17 billion).
Chief Financial Officer Mohammed Arif highlighted the ongoing problems, noting that 305 acres of the steel mill's land had been illegally occupied. In addition, the mill owes the federal government Rs 156 billion (approximately USD 545 million) and the National Bank Rs 102 billion (approximately USD 357 million). These financial burdens are making it increasingly difficult for the government to maintain PSM's operations.
Despite these challenges, some sources said that international companies, including some from Russia, have shown interest in buying the steel plant. However, the government currently lacks the resources and facilities to revitalize the plant, leading to the decision to permanently shut it down.
The closure of PSM marks the end of an era for Pakistan's steel industry and raises questions about the future of the country's heavy industry sector.
Comments
No comment yet.