Pakistan Steel Mills has remained largely inactive for more than a decade. However, the government continues to provide substantial financial support.
Recent official figures show that around Rs58 billion was provided to the state-owned steel producer. The mill has remained largely shut during this period.
Production at Pakistan Steel Mills stopped in 2015. Despite the shutdown, the federal government continued funding the organisation.
The Ministry of Industries and Production disclosed the figures in a written response to the Senate. Senator Talha Mahmood had sought details about government funding for the mill.
Government records show that the largest amount was released in 2021. Pakistan Steel Mills received around Rs38 billion during that year.
The financial support continued in subsequent years. The mill received approximately Rs8 billion in 2022, according to official records.
Around Rs2 billion was released in 2023. The government provided nearly Rs3.25 billion in 2024.
Another Rs820 million was released during 2025. These payments contributed to the total government support of around Rs58 billion.
The scale of the funding has raised questions about the mill’s prolonged closure. Pakistan Steel Mills has remained effectively non-operational for around 11 years.
The funds have mainly supported the organisation’s financial obligations. These obligations include salaries, pensions and gratuity payments.
Official figures show that around Rs12 billion was spent on salaries. A further Rs15.25 billion was paid in gratuity.
The spending highlights the financial burden linked to the inactive industrial facility. A significant portion of public funds has supported employees and former employees.
The latest figures also underline the contrast between the mill’s past and present performance. Pakistan Steel Mills last reported a profit of around Rs9.5 billion in 2008.
The organisation later faced prolonged financial problems and operational challenges. Its future has remained uncertain amid repeated efforts to address its difficulties.
The Rs58 billion provided to Pakistan Steel Mills has not restored regular production. Instead, government funding has largely covered its continuing financial responsibilities.
The government has also removed Pakistan Steel Mills from the privatisation list. This decision has created further uncertainty about its future direction.
Questions remain over how authorities will address the mill’s accumulated liabilities. There are also concerns about whether the facility can become operational again.
The Rs58 billion in government support represents a significant financial commitment. It also highlights the challenges facing Pakistan’s state-owned industrial enterprises.
Reviving the mill could require major investment and a clear operational strategy. Authorities would also need to address its financial and administrative problems.
The government has yet to provide a clear long-term solution for the facility. For now, Pakistan Steel Mills continues to rely on public funding despite its prolonged shutdown.
The Rs58 billion expenditure has renewed debate over the management of state-owned enterprises. It has also raised questions about their financial sustainability and future role.
In other news read more about: Pakistan Steel Mills Losses Projected to Reach Rs. 600 Billion
