Govt Clears Rs1.366B PSM Retiree Dues in Reform Push

KARACHI: The government has disbursed Rs1.366 billion to clear long-overdue payments for 411 retired employees of Pakistan Steel Mills (PSM), advancing its comprehensive reform agenda for the state-owned enterprise.

Documents accessed by Wealth Pakistan confirm that the funds cover gratuity, provident fund, and leave encashment obligations, with disbursement slated for completion within October, providing crucial financial relief to retired workers.

Despite production suspension since 2015, officials emphasized ongoing efforts to settle financial liabilities, reclaim encroached land, and implement accountability measures within the restructuring framework.

Records show 899 employees still on PSM’s active payroll, with salaries funded through government loans to maintain essential operations and administrative functions during the revival process.

To protect assets, PSM management has escalated its anti-theft drive, filing 26 FIRs and effecting arrests for copper and other material thefts. Recovered materials will be auctioned to generate revenue and mitigate operational losses.

Concurrently, PSM has reclaimed 20 acres of encroached land and targets an additional 38 acres in partnership with local authorities, aiming to repurpose these for industrial use under the government’s state-owned enterprise revitalization initiative.

Sprawling across 18,600 acres in Karachi, Pakistan Steel Mills encompasses the Gulshan-e-Hadeed Housing Project, developed in phases since 1986 for employees.

Policymakers view PSM’s revival as a strategic imperative to curb steel import dependency, generate employment, and fortify Pakistan’s construction and manufacturing sectors—pivotal engines of industrial growth.