Vice President Syed Ghulam Mustafa Shah. Photo: APP
ISLAMABAD:
The Ministry of Industry and Production on Wednesday indicated a joint federal-provincial approach to rebuilding steel production capacity, confirming coordination with the Sindh government for the allocation of land for the establishment of a new steel plant.
The House, which met under the chairmanship of Vice President Syed Ghulam Mustafa Shah, discussed key issues related to Pakistan Steel Mills (PSM), with the ministry outlining past closures, workforce reductions and plans for future revival.
The session started half an hour late, after which a written response from the Ministry of Industry and Production was tabled, providing detailed information on the current situation and future direction of the PSM.
According to the response, production operations at Pakistan’s steel mills have remained suspended since 2015, a prolonged shutdown that has shaped subsequent policy decisions on restructuring, downsizing and alternative options to revive steel production capacity in the country.
The government informed the House that 700 acres of land owned by PSM has been allocated either for the establishment of a new steel plant or for revival initiatives, aimed at creating a viable framework for future industrial activity.
It was stated that efforts were underway to seek assistance from relevant institutions to obtain technical support and make the steel sector attractive for revival or new investments, with emphasis on improving long-term feasibility and sustainability.
In this regard, protocols were signed between Pakistan Steel Mills and Russian Industrial Engineering Company, with the first protocol 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’s steel mills would be demolished, marking a decisive policy shift after years of uncertainty surrounding the loss-making venture.
The ministry reiterated that in collaboration with the Sindh government, approval was granted for the allocation of land for the establishment of a new steel plant, highlighting a coordinated federal-provincial effort to rebuild steel production capacity.
On employment, the ministry said that out of 8,021 employees of Pakistan Steel Mills, 7,709 have been retrenched, and only 912 workers are currently retained, significantly reducing the operational footprint of the organization.
As a result of these measures, the monthly wage burden fell sharply from 360 million rupees to 40 million rupees, easing what the government described as substantial financial pressure on the national exchequer.
