Pakistan Steel Mills (PSM), shut since June 2015, has piled up losses of Rs79.3 billion in the three fiscal years from 2023-24 to 2025-26, according to figures from the Ministry of Industries and the Central Monitoring Unit (CMU).
In the latest year alone (2025-26), the closed mill recorded a Rs24 billion loss. Nearly three-quarters of the three-year total, Rs57.4 billion, came from interest on old loans. Interest costs in 2025-26 stood at Rs17.7 billion, slightly lower than the previous year because of reduced rates. Of that amount, Rs11.8 billion was charged on government loans and Rs5.2 billion on commercial bank borrowing.
Even with no production, PSM still paid out Rs3.9 billion in staff salaries over the three years and spent Rs9.1 billion on fuel, electricity, water and gas. As of 2024-25 its cash development loan stood at about Rs108 billion, carrying roughly Rs11.5 billion in yearly interest, while bank loans exceeded Rs40 billion, mostly from the National Bank of Pakistan.
The CMU had earlier advised restructuring the debt, but the step was not taken. Officials note that outdated technology, heavy liabilities and zero output leave the mill unable to compete.