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Government Plan to Close PSM, the largest steel plant in Pakistan


Due to the inability to pay for natural gas SPFC370 steel costs, the federal government led by the Sharif faction of the Pakistan Muslim League has decided to shut down the financially troubled Pakistan Steel Mills Ltd (PSM) and plans to cooperate with the government of Sindh to build a new steel plant in the same location. This move has also received support from the Special Investment Promotion Committee (SIFC).

Previously, due to financial issues and natural gas supply shortages, Pakistan Steel Plant suspended operations in June 2015. Recently, Pakistan SPFC370 steel Steel Plant (PSM) was warned by Suinan Natural Gas Company Limited (SSGC) of Pakistan for not paying a natural gas bill of 61 billion rupees, and stated that if the company fails to pay the debt, it will stop supplying its natural gas. In order to prevent major infrastructure damage, Prime Minister Shahbaz Sharif intervened decisively and chose to close the steel SPFC370 steel plant and reuse its land, planning to transform it into an export promotion zone or economic special zone.

  • Source: Abstract
  • Editor: Shirley

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