The Pakistani government has decided to close Pakistan Steel Mills (PSM), according to media reports. The government will also give the control of lands belonging to PSM to the Sindh province government for general industrial use. In addition, the government plans to establish a new steel plant on PSM lands in collaboration with the Sindh province government.
PSM, which had ceased operations in 2015 despite plans for record production and payment of natural gas debts, has been receiving minimal natural gas supply only to maintain its infrastructure due to unpaid bills.
Meanwhile, following the decision to privatize PSM in the third quarter of the fiscal year 2022-23, the Pakistani government was offered $1-1.5 billion for the purchase of majority stakes in PSM with leading investor consortiums from China and Russia expressing interest, as SteelOrbis previously reported.