Pakistan Steel Mills: committee to probe 18 years of alleged looting and destruction

Pakistan Steel Mills (PSM), once a profitable state-owned industrial giant, is at the centre of renewed scrutiny as a National Assembly

ISLAMABAD/KARACHI: Pakistan Steel Mills (PSM), once a profitable state-owned industrial giant, is at the centre of renewed scrutiny as a National Assembly committee prepares to investigate alleged irregularities, financial losses and the destruction of its assets over the past 18 years.

The National Assembly Secretariat has convened the 23rd meeting of the Standing Committee on Industries and Production on Thursday, November 5, 2026, at 2:00 pm at the EDB Complex, Constitution Avenue, Islamabad. The meeting will examine allegations that workers and residents of Steel Town and Gulshan-e-Hadeed describe as years of systematic exploitation and mismanagement.

From Profitable Enterprise to Financial Crisis

Until June 2008, Pakistan Steel Mills was reportedly generating billions of rupees in profits for the national exchequer. However, from July 2008 to October 2026, the industrial giant witnessed a prolonged decline, eventually ceasing operations and accumulating liabilities exceeding Rs600 billion.

Its vast assets, including approximately 19,500 acres of land, machinery, plant, inventory and iron ore, have also come under scrutiny over alleged illegal occupation, unauthorised transactions and questionable issuance of No Objection Certificates (NOCs).

Four Major Questions Awaiting Answers

The upcoming committee meeting raises several critical questions concerning the Mills’ downfall and accountability.

First, who was responsible for the alleged financial and asset-related irregularities, and who facilitated those involved? The committee’s agenda specifically refers to FIR No. 550/2025, concerning the alleged illegal issuance of NOCs and release of Pakistan Steel Mills’ case property. Questions have also been raised regarding the circumstances surrounding the release of the property and bail granted to accused officials.

Second, which governments, boards, chief executive officers and ministries should be held accountable for the Mills’ deterioration between July 2008 and October 2026?

Third, who was responsible for safeguarding the institution’s valuable assets? Concerns have emerged over alleged illegal occupation and disposal of property, alongside the removal of existing legal counsel and appointment of a new advocate without approval from the competent authority.

Fourth, what measures will be taken to address the grievances of former employees and residents of Steel Town and Gulshan-e-Hadeed? Thousands of workers reportedly lost their jobs, while retired employees and widows continue to await outstanding dues and pensions. Meanwhile, approximately 1.5 million residents face challenges involving water, electricity, gas, leases and encroachments.

Agenda of the November 5 Meeting

According to Notice No. F.7 (1)/2026-Com-II/I&P, issued on October 30 by Deputy Secretary Malik Amir Hussain Deharr, the committee will receive a briefing from SMEDA’s CEO on ongoing and pending projects nationwide.

The CEO of Pakistan Steel Mills will also brief members on the alleged irregularities in FIR No. 550/2025, investigation and legal proceedings, the appointment of new counsel, and measures to determine responsibility and protect the institution’s interests.

Accountability or Another Formality?

The meeting, chaired by Syed Hafeezuddin and attended by representatives of major political parties, has been welcomed by workers’ unions.

However, workers insist that discussions alone will not resolve the crisis. They are demanding transparent investigations, recovery of assets, accountability and justice for affected employees.

The November 5 meeting could prove a significant moment for Pakistan Steel Mills. The central question remains whether parliamentary scrutiny will lead to meaningful action or become another formality in the prolonged struggle for accountability.