The government has decided to revive Pakistan Steel Mills (PSM) rather than proceed with its earlier plan to liquidate the state-owned steel producer, following international interest in restarting the long-dormant industrial facility.
The policy shift comes after consultations with Russia’s Industrial Engineering LLC on the revival, modernization, and restructuring of PSM. According to Business Recorder, two protocols have already been signed between the Russian company and PSM under the Ministry of Industries and Production.
Two Protocols Signed With Russian Firm
The first protocol, signed in Moscow on July 10, 2025, covers cooperation on PSM’s revival, modernization, and restructuring. A second protocol, signed on November 26, 2025, focuses on assessing the operational and capital expenditure requirements needed for manufacturing to resume.
Cost and Feasibility Assessment Completed
The government has also carried out an assessment of production costs and market feasibility, with the findings expected to help determine whether the mill can be revived on a commercially viable basis.
A formal summary on the matter has been submitted to the Ministry of Industries and Production, and the relevant authority is expected to recommend to the Cabinet Committee on State Owned Enterprises that the liquidation process be halted.
From Liquidation Plan to Reversal
The government had previously moved to scrap PSM after failing to find a buyer for the facility.
The Special Investment Facilitation Council decided in May 2024 to shut down the mill, and the Cabinet Committee on Rightsizing approved liquidation of the existing facility in August 2024.
The latest development marks a reversal of that earlier decision.
Power Minister Signals Revival Recommendations Are Coming
Power Minister Sardar Awais Leghari said recommendations for reviving PSM will soon be submitted to policymakers, adding to the renewed push to restart the country’s major steel producer.
In the meantime, the government continues to pay salaries for PSM’s remaining employees, while the mill’s operating bills are being covered through proceeds from the sale of scrap material.
