Vice Chairman Syed Ghulam Mustafa Shah. Photo: APP
ISLAMABAD:
The Ministry of Industries and Production on Wednesday indicated a joint federal-provincial approach to rebuilding steel production capacity, confirming coordination with the Sindh government for allotment of land for setting up a new steel plant.
The House, which met under the chairmanship of Deputy Speaker Syed Ghulam Mustafa Shah, took up key issues relating to Pakistan Steel Mills (PSM), where the ministry outlined past shutdowns, workforce reduction and plans for future revival.
The meeting began with a delay of half an hour, after which a written response from the Ministry of Industry and Production was presented with detailed information on PSM’s current status and future direction.
According to the response, production at Pakistan Steel Mills has remained suspended since 2015, a prolonged shutdown that has shaped subsequent policy decisions on restructuring, downsizing and alternative options to revive steelmaking capacity in the country.
The government informed Parliament that 700 acres of land belonging to PSM has been allotted either for setting up a new steel plant or for revitalization initiatives aimed at creating a viable framework for future industrial activity.
It was informed 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 investment with a focus on improving feasibility and long-term sustainability.
In this regard, protocols have been signed between Pakistan Steel Mills and Russia’s Industrial Engineering Company, with the first protocol being printed on July 10, 2025, followed by another 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 scrapped, marking a decisive shift in policy after years of uncertainty surrounding the loss-making enterprise.
The ministry reiterated that in collaboration with the Sindh government, approval has been given for allotment of land for setting up a new steel plant, underscoring a coordinated federal-provincial effort to rebuild steel production capacity.
In terms of employment, the ministry said that out of 8,021 employees of Pakistan Steel Mills, 7,709 have been retrenched, with only 912 workers currently retained, significantly reducing the organisation’s operational footprint.
As a result of these measures, the monthly salary burden has come down sharply from Rs360 million to Rs40 million, easing what the government described as a significant financial burden on the national exchequer.
