Islamabad: The government has renewed efforts to revive Pakistan Steel Mills (PSM), reversing its earlier decision to liquidate the state-owned enterprise amid interest from international parties.
Acording to well-informed sources, the government has initiated consultations with Russian company Industrial Engineering LLC on the revival, modernisation and restructuring of PSM.
Two protocols have already been signed between the Russian company and PSM under the Ministry of Industries and Production. The first, signed in Moscow on July 10, 2025, covers cooperation for the revival, modernisation and restructuring of the mill.
The second protocol, signed during the 10th session of the Pakistan-Russia Intergovernmental Commission on November 26, 2025, focuses on determining the operational and capital expenditure requirements for manufacturing.
Sources said an exercise had also been conducted to determine production costs and assess the market feasibility of PSM’s operations. The findings are expected to provide a basis for making a final decision on the mill’s revival.
The concerned authority is expected to submit recommendations to the Cabinet Committee on State-Owned Enterprises (CCoSOEs) to halt the liquidation process, with the government now exploring the possibility of reviving the mill with support from international investors.
The Special Investment Facilitation Council (SIFC) had decided in May 2024 to scrap PSM, while the Cabinet Committee on Rightsizing approved liquidation of the existing mill in August 2024 after efforts to find a buyer failed.
The latest move represents a shift in government policy, with authorities now seeking to restore PSM to operational status. The government is expected to follow the timeline agreed with the Russian company as consultations on the revival plan progress.
Meanwhile, Minister for Power Sardar Awais Leghari has said recommendations for reviving the dormant steel mill would soon be submitted to policymakers, indicating renewed government efforts to restore the facility.
The government has continued to bear the salaries of remaining PSM employees, while the mill’s other expenses have been met through proceeds from the sale of scrap.
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