Key Takeaways:
• Pakistan Steel Mills (PSM) declared beyond revival
• 19,000 acres of PSM land to be used for special economic zones
• Utility Stores Corporation to receive significant funding increase
PSM’s Fate Sealed
In a recent meeting of the National Assembly’s Standing Committee on Industries and Production, officials revealed that Pakistan Steel Mills has been deemed unsalvageable. The decision, made during discussions led by the Prime Minister’s Special Investment Facilitation Council, cited the mill’s outdated infrastructure and technology as insurmountable obstacles to its revival.
Land Repurposing Plans
The vast 19,000-acre property belonging to PSM will not go to waste. Plans are underway to establish special economic zones (SEZs) on this land. Already, two SEZs covering 1,200 acres have been set up at the request of Sindh’s Chief Minister. An additional 700 acres have been earmarked for a modern steel mill project.
Cost-Cutting Measures
To prevent further financial drain, authorities have approved the termination of gas supply to PSM by June 30. This move is expected to save the national treasury approximately 2.5 billion rupees.
Utility Stores Corporation Update
The committee also received a briefing from the Utility Stores Corporation (USC) management. Established in 1971, the USC operates nearly 4,775 functional stores nationwide, providing subsidized food items to targeted beneficiaries. The corporation is set to receive a substantial budget increase, with around 60 billion rupees likely to be approved for the current year.
Industrial Sector Concerns
Committee members expressed worry over the tax burden on the industrial sector. They plan to seek a briefing from the Federal Board of Revenue chairperson and explore possibilities for tax relief to support industrial revival.
