The federal government has decided to permanently close Pakistan Steel Mills, a state-owned industrial giant, after multiple unsuccessful attempts to privatize it. This decision marks the end of efforts to secure a sustainable future for the struggling mill.
The Secretary of Industries & Production disclosed that the Sindh government plans to develop its own steel mill on a 700-acre piece of land offered for this purpose. This new initiative aims to fill the gap left by the closure of Pakistan Steel Mills and boost local industry.
The Chief Financial Officer of Pakistan Steel Mills provided financial details, revealing that the mill has been a significant financial burden. Annual expenses for employees alone amount to Rs. 3.1 billion, and over the past decade, total salary expenditures have reached Rs. 32 billion.
These financial challenges, coupled with high utility costs such as Rs. 7 billion spent on gas consumption over the last ten years, contributed to the decision to shut down the mill.
Closing Pakistan Steel Mills represents a major change in the country’s industrial landscape. While it marks the end of an era for the mill, the Sindh government’s plan to establish a new steel mill offers hope for the future of the steel industry in the region.
This new project has the potential to create jobs and stimulate economic growth, mitigating some of the negative effects of Pakistan Steel Mills’ closure.
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