PSM’s Accumulated Losses Reach Rs600 Billion

Pakistan Steel Mills (PSM) Chairman Asad Islam Mahni stated on Saturday that the mill’s total losses have mounted to Rs600 billion by 2024, with an annual interest payment of Rs20 billion.

The PSM chairman informed the Senate Standing Committee on Industries and Production, led by Senator Aon Abbas, during their visit to the PSM in Karachi. The committee assessed the organization’s ongoing challenges related to debts, pending payments, and expenditures. They also listened to the concerns raised by employee unions.

Committee members present included Senator Syed Masroor Ahsan, Senator Khalida Ateeb, and Senator Husna Bano.

During the briefing, Mahni also conveyed that PSM owes Rs89 billion to the National Bank of Pakistan (NBP), as most of the loans were obtained from NBP to cover expenses, including the salaries of the company’s 934 current employees.

Furthermore, PSM officials briefed the committee that the government is concurrently considering two strategies. One involves revitalizing PSM through Russian Industrial Engineering LLC, which plans to utilize arch and blast furnaces. The other strategy involves liquidating PSM after engaging a valuation firm.

The committee also engaged with worker union representatives, who informed them of the difficulties faced by both retrenched and current PSM employees.

To address employee concerns, the committee established a sub-committee to review their reservations and engage in discussions with the management.

The Senate standing committee acknowledged the current management’s efforts to decrease PSM’s expenditure. However, they expressed dissatisfaction with the recurring thefts at PSM and instructed the authorities to assess the losses incurred as a result. Additionally, they advised accelerating the liquidation of movable assets that are no longer functional or have reached the end of their service life.

The committee was informed about past arbitrary PSM land allotments by the Sindh government. They voiced concerns regarding the allotment of 1370 acres and 400 acres of PSM’s undisputed land to Goths by the Sindh government and suggested referring these allotment cases to the Council of Common Interests (CCI).

The committee also toured various PSM plants and recommended that the government expedite decisions regarding the steel mills’ future.