Vice President Syed Ghulam Mustafa Shah. Photo: APP
ISLAMABAD:
The Ministry of Industries and Production on Wednesday indicated a joint federal-provincial approach to rebuild steel production capacity, confirming coordination with the Sindh government for the allocation of land to establish a new steel mill.
The chamber, which met under the chairmanship of Vice President Syed Ghulam Mustafa Shah, addressed key issues related to Pakistan Steel Mills (PSM), with the ministry outlining past closures, staff reductions and plans for future revival.
The session began with a delay of half an hour, after which a written response from the Ministry of Industries and Production was presented, providing detailed information on the current status and future direction of the PSM.
According to the response, production operations at Pakistan Steel Mills have remained suspended since 2015, a prolonged closure that has shaped subsequent policy decisions on restructuring, retrenchment and alternative options to revive steel production capacity in the country.
The government informed the House that 700 acres of land belonging to PSM has been allocated for the establishment of a new steel mill or for revival initiatives, aimed at creating a viable framework for future industrial activity.
It was stated that efforts are being made to seek assistance from relevant institutions to obtain technical support and make the steel sector attractive for revival or new investments, focusing on improving long-term viability and sustainability.
In this regard, protocols were signed between Pakistan Steel Mills and the Russian Industrial Engineering Company; The first protocol was signed on July 10, 2025, followed by a second agreement signed on November 26, 2025.
The house was further informed that in May 2024, the Special Investment Facilitation Council (SIFC) decided that Pakistan Steel Mills would be dismantled, marking a decisive shift in policy after years of uncertainty surrounding the loss-making company.
The ministry reiterated that in collaboration with the Sindh government, approval has been granted for the allocation of land for the establishment of a new steel mill, underlining a federal-provincial coordinated effort to rebuild steel production capacity.
On employment, the ministry said that of the 8,021 employees of Pakistan Steel Mills, 7,709 have been laid off and only 912 workers are currently retained, significantly reducing the organization’s operational footprint.
As a result of these measures, the monthly wage burden has dropped sharply from Rs 360 million to Rs 40 million, easing what the government described as substantial financial strain on the national exchequer.
