Closed steel mill causes Rs79b loss

Pakistan Steel Mills (PSM) has caused losses of over Rs79 billion across the past three fiscal years, according to Ministry of Industries figures reported by The Express Tribune. Rs57.5 billion of that amount was booked as interest expenses, while Rs24 billion was recorded in fiscal 2025-26 alone. The mill has been shut since June 2015, yet employees continued to receive salaries and the state kept paying interest on past loans.

The Central Monitoring Unit (CMU), which tracks state-owned enterprises, had recommended restructuring the debt, but the finance ministry did not act on that advice. As of fiscal 2024-25, the cash development loan stood at Rs108 billion, and bank loans exceeded Rs40 billion, mainly from the government-owned NBP. The CMU also warned that legacy debt is building up with no operations, and that guarantees of Rs40 billion were needed to prevent default.

Salary payments of Rs3.9 billion over the three years were recorded, with a 50% drop in fiscal 2025-26 compared with the year before. Another Rs9.1 billion went on fuel, power, water and gas charges across the same period. The CMU's debt restructuring recommendation was never put into effect, though it also suggested joint ventures with global steel makers.