Pakistan Steel Mills (PSM) has recorded cumulative losses of Rs. 79.3 billion over the past three fiscal years, despite remaining non-operational since 2015, according to official figures.
A significant portion of the losses has been linked to interest payments on the mill’s legacy debt. These costs amounted to Rs57.4 billion, representing approximately 72% of the total losses reported during the period.
The state-owned steel mill incurred a loss of Rs24 billion in the 2025–26 financial year alone. Despite the absence of production activities, the government continued to bear expenses related to employee salaries, utilities and debt obligations.
The ongoing financial burden has raised concerns about the future of the facility and the cost of maintaining an inactive industrial unit.
Officials have proposed several measures to address the mill’s financial challenges, including restructuring its outstanding debt. Suggested options include debt-to-equity swaps and transferring existing liabilities to a separate holding company.
Other recommendations focus on attracting foreign investment and establishing joint ventures with international steel producers. Modernising the facility has also been identified as part of the proposed revival strategy.
The recommendations are aimed at reducing the financial pressure associated with PSM while exploring options for its future development and potential return to industrial operations.
The mill’s continued losses highlight the challenges surrounding public-sector enterprises, particularly when debt-related expenses continue to accumulate despite the absence of production.
