Monday, July 22, 2024

Govt Decides to Shut Down Pakistan Steel Mills

The federal government has decided to permanently shut down the state-owned Pakistan Steel Mills after multiple failed attempts to privatize it. This decision marks the end of a long-standing effort to find a viable future for the struggling industrial giant.

The Secretary of Industries & Production revealed that the Sindh government has plans to develop its own steel mill on a 700-acre piece of land that has been offered for this purpose. This new initiative aims to fill the gap left by the closure of PSM and boost local industry.

The Chief Financial Officer of PSM provided some financial insights, stating that the mill has been a significant financial burden. The annual expenses related to employees amount to Rs. 3.1 billion, and over the past ten years, the total spent on salaries has reached Rs. 32 billion.

These figures highlight the financial challenges faced by PSM, which contributed to the decision to close it down.

In addition to salary costs, PSM’s gas consumption has also been substantial, amounting to Rs. 7 billion over the last decade. This high cost of utilities further strained the mill’s finances, making it increasingly difficult to sustain operations.

The closure of Pakistan Steel Mills represents a significant shift in the country’s industrial landscape. While the end of PSM brings an era to a close, the Sindh government’s plan to establish a new steel mill offers a glimmer of hope for the future of the steel industry in the region.

This new project could provide jobs and stimulate economic growth, potentially offsetting some of the negative impacts of PSM’s closure.

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