Karachi, April 23, 2026: The Insaf Labour Union (ILU), the collective bargaining agent (CBA) of Pakistan Steel Mills (PSM), has raised serious concerns over governance issues, management performance and the future direction of the country’s largest industrial unit, calling for urgent measures to safeguard assets and ensure industrial peace.
In a letter addressed to the Chairman Board of Directors and Corporate Secretary of PSM, the union expressed reservations regarding the additional charge of Chief Executive Officer assigned to Joudat Ayaz, Managing Director of National Fertilizer Marketing Limited, by the Ministry of Industries and Production on April 16, 2026.
The union maintained that the appointment allegedly violated provisions of the State-Owned Enterprises (SOE) Act 2023, arguing that the authority to appoint a CEO rests with the Board of Directors under Section 18 of the law. It further stated that operational autonomy granted to SOE boards under Section 17 limits administrative intervention without federal government approval.
The ILU also criticised the absence of performance monitoring of successive PSM managements since 2008, claiming that financial losses exceeding Rs800 billion had accumulated during this period.
According to the letter, previous correspondence sent to the board in 2025 seeking meetings to address employee grievances, asset protection and outsourcing decisions remained unanswered.
The union questioned the government’s policy direction, asking whether authorities intended to revive, privatise or liquidate Pakistan Steel Mills, citing delays in convening a committee constituted in April 2024 to propose viable options for the organisation’s future.
It further pointed out that audited financial statements for recent years had not been submitted, prompting regulatory action by the Securities and Exchange Commission of Pakistan (SECP), including show-cause notices and adjudication proceedings for non-compliance.
Referring to the Federal State-Owned Enterprises Annual Aggregate Report FY2025 issued by the Central Monitoring Unit of the Ministry of Finance, the union noted concerns regarding governance gaps, lack of statutory audits and the need for stronger board oversight across industrial SOEs including PSM.
The letter also referred to ongoing discussions involving foreign investors and potential revival plans through land leasing, foreign direct investment and possible technical cooperation with international partners.
The union requested submission of accurate financial data to relevant government forums and sought a meeting with stakeholders to resolve issues faced by employees and residents of Steel Town and Gulshan-e-Hadeed.
It further proposed that the PSMC Stakeholders’ Group be invited to brief the Board of Directors on revival proposals, settlement of liabilities and accountability measures aimed at financial recoveries and institutional reform.
