The crisis surrounding Pakistan Steel Mills (PSM) has intensified as the PSMC Stakeholders Group has called for an urgent National Assembly inquiry into alleged losses exceeding Rs800 billion and questioned the management and financial affairs of the state-owned industrial giant.
In a letter addressed to the National Assembly Standing Committee on Industries and Production, the stakeholders urged lawmakers to take up the issue during the committee’s upcoming meeting on September 3, 2026. The group has expressed concern that Pakistan Steel Mills was not included in the meeting agenda despite what it described as the seriousness of the situation.
The stakeholders have alleged that the costs incurred by the Ministry of Industries and Production in connection with Pakistan Steel Mills between 2008 and 2026 exceed Rs800 billion. They have also claimed that the impact on the national exchequer is more than $20 billion. However, these figures and allegations have not been independently verified.
The group has raised concerns about the availability of financial information, management practices, alleged theft of valuable materials and land-related matters. It has also questioned the government’s current strategy for dealing with the long-standing crisis at the steel mill.
The stakeholders are seeking an audited comparative Key Performance Indicators (KPI) report covering Pakistan Steel Mills’ performance from 1985 to 2026. They believe such an assessment could help determine whether the mill remains a viable national asset or has become a continuing financial burden.
Pakistan Steel Mills, once the country’s largest integrated steel-producing facility, has remained non-operational since 2015. Successive governments have considered various options for the loss-making entity, including revival, leasing and privatisation.
The stakeholders have also called for a forensic examination of PSM’s affairs and accountability for decisions taken between 2008 and 2026. They have offered to appear before the National Assembly committee and present their position, while seeking explanations from relevant officials and the PSM Board of Directors.
The allegations remain subject to verification through official records, independent audits and responses from the relevant authorities.
