There are several loss-making state-owned enterprises in the country, such as the national flag carrier Pakistan International Airlines and Pakistan Steel Mills. PHOTO: REUTERS
ISLAMABAD:
The government has released Rs 1,366 crore to clear dues of 411 retired employees of Pakistan Steel Mills (PSM).
According to documents available with Wealth Pakistan, the allocated amount covers gratuities, provident funds and leave cash payments.
The disbursement is expected to be completed within the month of October, providing long-awaited financial relief to retired employees.
According to the documents, 899 employees still remain on PSM’s payroll, and salaries are funded through government loans to PSM to sustain operations and maintain essential functions while facility restructuring continues.
Meanwhile, in an effort to protect this precious state-owned enterprise, the management has intensified its anti-theft drive, registering 26 FIRs and making multiple arrests related to theft of copper and other materials.
The recovered materials will be auctioned to generate income and offset operating losses. The company has also reclaimed 20 acres of encroached land and plans to reclaim an additional 38 acres in collaboration with the local administration.
These assets will be returned to industrial use under the government’s broader strategy for the revitalization of state-owned enterprises.
Although production at PSM remains halted since 2015, the government’s continued focus on financial cleanup, land reclamation and employee settlements is widely seen as the foundation for future industrial revival in the country.
The current reform plan focuses on settling liabilities, recovering invaded lands and improving accountability mechanisms.
Spread over 18,600 acres in Karachi, the company also includes the Gulshan-e-Hadeed Housing Project, developed for employees in multiple phases since 1986.
Policymakers see restarting the plants as a strategic economic priority, one that could reduce steel imports, create jobs and support the construction and manufacturing sectors.
