NA committee raises alarm over PSM governance as Govt pursues Russian revival plan

The *National Assembly Standing Committee on Industries and Production* has expressed serious concern over governance issues at *Pakistan

ISLAMABAD: The *National Assembly Standing Committee on Industries and Production* has expressed serious concern over governance issues at *Pakistan Steel Mills (PSM)* as the government moves forward with plans to revive the loss-making state-owned enterprise with Russian cooperation.

Chaired by *Syed Hafeezuddin, MNA*, the committee took notice of the appointment of *Ch. Akram, Director PSM*, to important positions despite an FIR and multiple charge sheets against him. The committee directed the Ministry of Industries and Production to conduct a detailed inquiry into the matter and submit its findings within 15 days.

The issue relates to a case involving alleged organised theft at PSM’s CB Zone. The ministry had requested an FIA investigation on *December 24, 2025*, after 36 tons of allegedly stolen material were recovered. *FIR No. 550/25* was subsequently registered at PS Bin Qasim.

In a letter dated *January 16, 2026*, the ministry alleged that misleading statements were submitted before the District Court, Malir, by *Kashif Ghafoor*, allegedly in collusion with Ch. Akram, resulting in bail being granted and weakening the prosecution’s case.

Officials familiar with the matter told *Minute Mirror* that PSM Administration issued three charge sheets against Ch. Akram between January and April 2026. One charge sheet accused him of unlawfully directing an officer not to lodge or initiate an FIR and of allegedly favouring the accused party by endorsing and signing a statement submitted before the court.

Another charge sheet dated *April 14, 2026*, held him responsible for a financial loss of *Rs4.85 billion*, allegedly arising from electricity being purchased at higher rates and supplied at lower rates without ensuring recovery of costs. A third charge sheet concerned his alleged unauthorised absence from duty.

The committee also raised questions over the prolonged delay in determining the future of PSM. A committee constituted through a government notification on *April 24, 2024*, under a decision of the SIFC Apex Committee, was tasked with considering options including closure and auction of the plant and equipment or re-operationalisation through private-sector participation.

However, more than two years later, no final report has reportedly been submitted.

A stakeholder submission seen by *Minute Mirror* questioned whether PSM would ultimately be revived or liquidated. The *PSMC Stakeholders Group* also claimed in a July 7, 2026 letter to BOI and SIFC that key senior positions, including permanent CEO, CFO, PEDs and Internal Auditor, had remained vacant for more than 22 months.

Records of the *National Industrial Relations Commission* have also highlighted uncertainty over the mill’s status. In an order dated *July 31, 2025*, PSM CEO *Assad Islam Maani* reportedly stated that the establishment was in liquidation, while the commission directed PSM to clear the retirement dues of an employee within 30 days.

Meanwhile, government sources said Pakistan has shifted its focus from liquidation towards revival after international interest in PSM.

According to sources, two protocols have been signed with Russia’s *Industrial Engineering LLC*. The first, signed in Moscow on *July 10, 2025*, covers cooperation for the revival, modernisation and restructuring of PSM. The second was signed during the *10th Pakistan-Russia Intergovernmental Commission* meeting on *November 26, 2025*.

Secretary Industries and Production *Saif Anjum* had earlier informed the committee that Russia would spend *$2.8 million* on a feasibility study. He said revival of the existing blast furnace could cost around *$400 million*, while a new turnkey plant could require up to *$1 billion*.

The committee also summoned the *K-Electric CEO* over industrial power outages in Karachi and directed Finance, Commerce and FBR officials to appear over the issue of double duty on EV chargers.

It further expressed strong reservations over the repeated absence of the Advisor and Secretary Industries and Production, warning that a *privilege motion* could be initiated if they fail to attend the next meeting.