The decision to permanently shut down Pakistan Steel Mills by the federal government, following multiple unsuccessful attempts at privatization, marks the end of an era for the struggling industrial giant. The closure comes amid significant financial challenges, including substantial annual employee expenses totaling Rs. 3.1 billion and a decade-long salary expenditure amounting to Rs. 32 billion. Additionally, high utility costs, particularly Rs. 7 billion in gas consumption over the last ten years, further burdened the mill’s finances and contributed to its unsustainable operations.
In response to the shutdown, the Sindh government has unveiled plans to develop its own steel mill on a 700-acre plot, aiming to fill the void left by Pakistan Steel Mills’ closure and revitalize local industry. This initiative not only seeks to mitigate the economic impact of the shutdown but also holds promise for job creation and economic growth in the region.
The closure of Pakistan Steel Mills signifies a significant transformation in Pakistan’s industrial landscape. While it symbolizes the end of an era for the once-prominent industrial entity, the establishment of a new steel mill by the Sindh government offers hope for the future, potentially ushering in a new chapter of economic revitalization and industrial development in the region.