The government of Pakistan has decided to permanently close Pakistan Steel Mills (PSM), a state-owned enterprise that has been experiencing heavy financial losses in the past decade.

The total losses of PSM were expected to reach Rs 600 billion, including direct losses of Rs 224 billion and a payment burden of Rs 335 billion.

Muhammad Arif, Chief Financial Officer of Pakistan, said 305 acres of steel plant land have been encroached upon, and the debt owed to the federal government and the National Bank was Rs 156 billion and Rs 102 billion, respectively.

Federal Minister Rana Tanveer disclosed that some international companies, including some Russian companies, are interested in the steel plant, but the government is currently unable to revive the facility of the plant.