The Pakistan Steel Mill (PSM) has been officially declared as scrap, with its revival deemed nearly impossible due to outdated infrastructure and technology. This decision was made during the Special Investment Facilitation Council (SIFC) meetings led by Prime Minister Shehbaz Sharif.
Reallocation of PSM Land
The Secretary of the Ministry of Industries & Production announced during a briefing to the Standing Committee on Industries & Production that the 19,000 acres of PSM land would be repurposed for establishing a Special Economic Zone. Two zones of 500 and 700 acres have been established, respectively. Additionally, at the request of the Chief Minister of Sindh, the government allocated an extra 700 acres to the provincial government for a new, modern steel mill.
Financial Challenges and Disconnection of Gas Supply
Established in 1974, the PSM has faced financial difficulties for the past decade. The CFO of the mill revealed last month that the annual salary for PSM employees is Rs. 3.1 billion, and over the past 10 years, the government has paid Rs. 32 billion in salaries. The Secretary noted that the Ministry approved the disconnection of the gas supply to PSM on June 30, 2024, to avoid an additional Rs. 2.5 billion cost to the national exchequer. The Committee has decided to hold a separate meeting for a detailed briefing on PSM.
Standing Committee Reviews Performance of Utility Stores Corporation
The Standing Committee on Industries & Production, chaired by Syed Hafeez ud Din, held a meeting where the Secretary briefly detailed the Ministry’s workings and performance.
Briefing on Utility Store Corporation
The MD of Utility Store Corporation (USC) updated the Committee on USC’s functions, performance, and challenges. USC has opened around 6,000 stores nationwide, with 4,775 currently operational. Last financial year, Rs. 22.53 billion was allocated to USC under the Prime Minister’s relief package, with Rs. 12.47 billion earmarked for the Ramzan Relief Package. This year, about Rs. 60 billion has been allocated for subsidized food items, pending Federal Cabinet approval.
After the briefing, the Committee decided that a detailed review of USC’s matters was necessary and scheduled a separate meeting. The MD of USC was instructed to submit all audit reports before the next meeting.
Concerns Over Industry Taxes
The Committee expressed concerns about the taxes imposed on the industry by the Federal Government. They suggested calling the Chairman of the Federal Board of Revenue (FBR) for a briefing on industry taxes and sought government support to waive taxes for industrial sector revival.
Besides the Federal Minister for Industries & Production, the meeting was attended by MNAs Mr. Shahid Usman, Mr. Sajid Mehdi, Ms. Kiran Imran Dar, Dr. Mahesh Kumar Malani, Mr. Muhammad Saad Ullah, Mr. Rana Atif, Mr. Muhammad Arshad Sahi, and Ministry officials.
