The government has decided to revive Pakistan Steel Mills (PSM) instead of closing it down for good. This marks a clear change from earlier plans to liquidate the long-idle state-owned steel plant.
Sources say the shift comes after international companies showed real interest in bringing the mill back to life. Talks have been held with a Russian firm called Industrial Engineering LLC. Two agreements have already been signed between the company and PSM. These cover plans to modernise, restructure, and restart operations.
Earlier, the Special Investment Facilitation Council had recommended scrapping the mill in 2024, and the Cabinet Committee on Rightsizing had approved liquidation. The plant has remained closed for years and was seen as a heavy burden on public finances. Now officials believe it can be saved with outside support.
A cost and market study has been carried out. Its results will help decide the final shape of the revival plan. Recommendations are being prepared for the Cabinet Committee on State-Owned Enterprises so that the liquidation process can be stopped.
Pakistan Steel Mills was originally built with help from the former Soviet Union and once played a big role in the country’s industry. Restarting it could create jobs, reduce the need to import steel, and support other manufacturing sectors. Officials hope the new partnership will turn the long-dormant plant into a working industrial asset once again.