Govt to Pay Off All Dues of Pakistan Steel Mills’ Employees

Federal Government in its today’s Cabinet Meeting has approved to pay off all the dues of Pakistan Steel Mills’ (PSM) employees.

The federal cabinet met in Islamabad with Prime Minister Imran Khan in the chair.

During the meeting, the cabinet gave the approval to pay off all outstanding dues of PSM employees including salary, pension and provident fund, gratuity and payroll dues to families of deceased employees.


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Federal Minister for Information announced the decisions taken in the cabinet’s meeting at a press conference.

The PSM was closed in June 2015 after Sui Southern Gas Company discontinued the supply of gas to the largest steel manufacturing plant in the country after its failure to pay outstanding dues of the gas utility.

Since then PSM is non-operational and thousands of its employees are getting salaries without any work.

Recently, the National Accountability Bureau (NAB) closed an investigation into the curtailment of natural gas supply to the Mills in 2015 that led to the closure of the country’s largest industrial unit.


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The inquiry was ordered on a reference moved in December last year by the then-chairman of the National Assembly’s standing committee on industries and production, Asad Umar, who is currently holding the portfolio of finance.

The reference had sought an investigation into why the gas supply was cut to the mill, forcing it to shut down, and why no intervention was made by the Pakistan Muslim League-Nawaz government when both the PSM and the gas utility, Sui Southern Gas Company, were owned by the government.


  • shaytaan

    More money down this particular black hole. These workers should be fired and PSM shut down

    • Mr Anonymous

      PSM was destroyed in PPP and PMLN tenure, it was making profits in Musharraf era, it’s very important for the gov to get state institutions running and get them back on their foot again. the last 10 years have been the worst nightmare for our country where this country was looted and plundered like never before. Accountability is on it’s way!!

      • shaytaan

        It isn’t possible to revive them because of the lack of a profit motive. Business is best left to the private sector which risks its own capital and has a motive to earn a return on it. In the case of PSM it cannot even be privatized because it is technically bankrupt. All that can be done is for it to be liquidated.

        • Mr Anonymous

          It’s possible but we need concrete steps to revive it, through professional people on the top management, end of political interference etc. Russia has also signaled in helping PSM just as Soviets did the first time in setting up PSM. The Malaysian model can be applied here on reviving state enterprises!

          • shaytaan

            So what you’re saying is that the motivations of public sector enterprises must change from serving political masters to meeting the needs of the marketplace? This isn’t possible as long as the ownership and management is public sector. Socialsm doesn’t work. Central planning doesn’t work. Capitalism is the only system that works.

            There is no reviving these orgs as long as they remain in the public sector. In fact the PTI is simply looking to employ its own cadres in these orgs to keep with its election pledge of creating 10 million new jobs. It’s going to worsen the finances of these companies.

            • Mr Anonymous

              I’m saying about placing competent and professional on top instead of cronies like in the last ten years when PSM saw the worst time even tho it was making profit in Musharraf’s era.
              Chinese model is in front of us where SOE have performed really well and made huge profits and are still run by the gov, so this point doesn’t hold here.
              Capitalism only serves a small group out of all as we see world wealth in a few hands instead of wealth distribution among all, usury is also the biggest cancer that we have today and has all the world in debt.

              There is no reviving these orgs as long as they remain in the public sector. In fact the PTI is simply looking to employ its own cadres in these orgs to keep with its election pledge of creating 10 million new jobs. It’s going to worsen the finances of these companies.

              It’s your assumption because we shall see it in time how they do. Time will decide who was right and who wasn’t..

              • shaytaan

                Chinese model is one of opening up the economy to private capital. The SOEs are the laggards there. Besides Pakistan is not China. The Chinese can afford to run loss making SOEs. We cannot!

                What do you think will change now that hasn’t changed in the last 70 years as far as competent leadership of SOEs is concerned? You think politicians will suddenly stop interfering in SOEs? IK has literally promised to create 10 million new jobs and that will only happen with further induction of PTI parasites in already loss making SOEs. So all this wishful thinking needs to stop. Capitalism works because individuals have skin in the game. There is no such personal interest in the affairs of SOEs.

  • 14K Employee Gas Switched Off By 2015 (No Production No Sale No Profit)
    Still 14K Staff Is Se Acha Hota K Saylani Ko Funds De Dete 3 Times Khana Khilane K Liye :

    Ya To Steel Mill Privatized Karo Ya On Karo Phir Se Warna Band Karo