PSM union demands Senate probe into Rs170 billion losses at steel mills

The Insaf Labour Union (CBA) of Pakistan Steel Mills (PSM) has called on the Senate Sub-Committee on Industries and Production

KARACHI: The Insaf Labour Union (CBA) of Pakistan Steel Mills (PSM) has called on the Senate Sub-Committee on Industries and Production to conduct a comprehensive inquiry into alleged financial irregularities, administrative failures, employee victimisation and mismanagement at the country’s largest steel manufacturing unit

The demand was submitted to the Senate committee in a detailed written statement following its visit to Pakistan Steel Mills on September 7, 2026. The submission was signed by Union Chairman Muhammad Yasin Jhamro.

Financial discrepancies

The union highlighted what it described as major discrepancies in PSM’s financial performance over the past 15 years, raising questions about the mill’s procurement, production and sales policies.

According to the submission, PSM generated sales revenue of Rs135 billion between 2008 and 2023, while the cost of goods sold during the same period stood at Rs350 billion.

The union said the figures represented a gap of more than Rs215 billion and warranted a detailed forensic examination of the mill’s financial affairs.

It urged the Senate committee to investigate how such a substantial difference emerged between the cost of goods and revenue and to determine whether financial and administrative decisions contributed to the losses.

Allegations of victimisation

The Insaf Labour Union also accused the Ministry of Industries and Production of applying accountability measures selectively.

Jhamro alleged that the ministry had discriminated in applying provisions of the Memorandums of Association against former PSM chairman Moin Aftab Sheikh, while individuals who allegedly faced similar questions during their tenure were treated more leniently.

The union also raised concerns about the treatment of PSM employees and residents of Steel Town and Gulshan-e-Hadeed. It claimed that hundreds of people had faced illegal terminations, non-payment of dues and a lack of basic facilities.

Union seeks records and investigations

The union has asked the Senate Sub-Committee to obtain complete details of PSM’s financial liabilities and audited accounts up to August 2026.

It also sought updates on ongoing FIA and NAB investigations concerning the affairs of Pakistan Steel Mills.

Another major demand was the submission of PSM’s key performance indicators from July 1985 to August 2026. The union wants the data to include production, sales and manpower deployment so that the mill’s performance can be assessed over the long term.

The union further urged the committee to ensure protection of PSM’s land and assets against encroachment and alleged illegal allotments.

Jhamro also called for employees, CBA representatives and other stakeholders to be heard before the committee makes recommendations regarding the future of the mill.

Union says PSM can be revived

Despite years of financial difficulties and operational closure, the union maintained that Pakistan Steel Mills remains capable of revival.

It said competent management, trained human resources and strict accountability could help restore the organisation. The union argued that PSM’s assets, skilled workforce and strategic location continue to make it an important national industrial asset.

Pakistan Steel Mills has remained non-operational for years amid financial problems and repeated efforts to determine its future.

The Senate Sub-Committee on Industries and Production visited the mill on September 7 to assess its present condition and examine possible options for its revival.

Sources within the committee told Minute Mirror that members took serious notice of the financial figures presented by the union and have sought a detailed briefing from the Ministry of Industries and Production and PSM management at the committee’s next meeting.