Strategy to revive PSM, PIA in the works: Asad

E-Paper | June 15, 2026

KARACHI: Minister for Finance, Revenue and Economic Affairs Asad Umar has said that the government is preparing a grand strategy to revive the Pakistan Steel Mills (PSM) and Pakistan International Airlines (PIA).

Speaking to the media on Friday in Islamabad, he said that the government is committed to bring the PIA and the PSM out of their current state.

He said that the state-owned entities (SOEs) are causing huge losses to the national kitty due to corruption and malpractices in the past.

However, he said that the government is committed to reviving these SOEs by rooting out the culture of corruption.

He said that the government has already provided Rs17 billion to the national-flag carrier which was approved by the Economic Coordination Committee (ECC) in November. The airline has accumulated losses of Rs356bn with total liabilities amounting to Rs406bn against assets of only Rs111bn.

Commenting on the plan to revive these PSM, he said the strategy will be finalised by January. He said that the plan will seek to increase the production capacity of the mills.

Moreover, he announced that the losses in the energy sector will be reduced to Rs140bn within a year.

He added that in order to avoid future losses, smart metering systems will be installed at the distribution companies to reduce power theft.

Mentioning the National Finance Commission (NFC), he said that Sindh has sent a name of the member for the NFC and the list will be forwarded to the prime minister for approval.

The Sindh government has nominated Asad Sayeed as the non-statutory member to represent the province in the NFC meeting.

Highlighting the government’s progress in its first 100 days, the finance minister said that the PTI has brought the country back from the brink of default.

Oil-import facility

Following a meeting with the senior officials of Finance, Economic Affairs and Petroleum divisions, Asad said that it was agreed to fully utilise the $4.5bn oil import facility over the three years.

The meeting reviewed the existing facilities from the International Trade Finance Corporation (ITFC) and other facilities for the import of different petroleum products.

ITFC — a member of the Islamic Development Bank (IDB) — had activated three-year $4.5bn financing facility for Pakistan in July.

The facility was aimed to help the country meet its crude oil and refined petroleum products import requirements during 2018-20.

Published in Dawn, December 29th, 2018

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Dr.M.S.Awan

Dec 29, 2018 09:01am

It sounds good but getting MSM and PIA to stand on their own feet is a very difficult task.These two entities are staked with over staffing,inefficient inductions and unproductive policies.They have sucked billions and I am afraid,they will continue to suck more until and unless there is a complete overhaul of the two.

Recommend 0

Syed Nazim

Dec 29, 2018 09:47am

Revival of steel mill seems to be difficult because of its non functioning and lack of maintenance, most of its machinery will have to be scrapped for which funds provided are not adequate. PTI is taking big brisk, if fails will carry consequences.

Recommend 0

Saood

Dec 29, 2018 10:49am

Couldnt devise a startegy in the first 4 months and we dont expect you to do it in the left obver 4.5 years.

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Jay Kumar

Dec 29, 2018 11:12am

Only talks no action. Almost 5 months passed but no plan.. Stocks exchange losing points on daily basis and reached below 37k. Who will invest here, when local industries are in loss and thinking about shutdown.

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Nabeel

Dec 29, 2018 11:24am

I flew on PIA about a week ago, and decided that it was my last trip on this airline. The flight was cancelled for no apparent reason, was not notified by PIA about it, they were rude when I tried to get new flight ticket. The food quality was poor, 80% of in-flight entertainment screens were non functional. Most of the staff is old and don't want to work. Airplane was dirty, its engine and wings were heavily stained with grease and oil. PIA should either be sold to private entity or discontinued. If world's superpower U.S.A doesn't have a national airline, then why do we need one?

Recommend 0

Fastrack

Dec 29, 2018 11:35am

Unity. Faith. Discipline- should be your guides. Deviate and you will perish. So far, masses are with you. Keep taking expert advice in technical matters and moving forward.

Recommend 0

ebrahim

Dec 29, 2018 11:54am

kick out all surplus employees specially Ghost employees

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Adi

Dec 29, 2018 12:10pm

State beuracracy itself is so lethaegic and inefficient, how can it handle and survive industrial units ! Better to sell them off, there is a reason why developed world has stopped state run commercial activities since long.

Recommend 0

Economizer

Dec 29, 2018 01:52pm

PPP state owned those institutions for gaining votes of public by offering them jobs in those institutions. How could they be profitable when people working their were guaranteed salaries despite the downfall of those institutions? PMLN was right on privatizing them but the fear of losing votes and the pressure of PPP stopped doing so. PTI must privatize them and let people who lose jobs find other jobs. In short term it may be difficult for those people but in long term it will be beneficial for all of them.

Recommend 0

Mansur Ul Haque

Dec 29, 2018 02:35pm

Every thing sound good. Every thing in pipe line. Nothing of road map of anything shared with public. Keeping everything close to your heart is no good strategy. It raises alot of questions. Clueless that some people say. You can't argue with them.

Recommend 0

Ali Sabir

Dec 29, 2018 05:03pm

Now I realize they do not know what they are doing. They are dreaming. They may want to please the unions for votes but PSM will be pumping more money down a sewer. PSM can never make profits. It is not economically viable. PIA is a different story. It simply needs military discipline, arrests and convictions for money laundering and drug smuggling.

Recommend 0

M. Saeed

Dec 29, 2018 05:42pm

Best strategy would be , to work and let the work itself speaks.

Recommend 0

Bilal Kaifi

Dec 29, 2018 06:17pm

Privatization is the historically known strategy for reviving sick units . Other strategies of unqualified finance minister are not working

Recommend 0

Zahid

Dec 29, 2018 06:33pm

International tender need to be floated in international media to hand over PSM to financially sound company to run the affairs of PSM on profit/loss sharing basis 10,%/90% Pakistan/foreign firm over the period of 5-10 years.

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A Patriotic National

Dec 29, 2018 09:06pm

Salam Sir: Successive governments said the same - the lost units will be revived soon! So far nothiing has worked. Miracles do happen, but I guess not so often! Let us wait for this Minister to come up with some out of box idea for revival of these lost units!

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WayToGo

Dec 30, 2018 01:06am

Why not anything good after 60years but do something we are fedup of talks...

Recommend 0

Arcana

Dec 30, 2018 03:56am

This person is garrulous. Keeps on talking. Nothing serious. Don't worry about.

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Mubashir Munir

Dec 30, 2018 12:11pm

it is good for pia,for steel mills and for pakistan by way of good management this is very good for both the instituitions as we shall be able to lessen import of steel products and saving foreign exchange plus giving jobs to Pakistanis in Pakistan Steel Mills The government should also renovate it to get more profit. I am hopeful that in the long run they will be profitable for Pakistan and shall earm more to pay for the losses in lost decade.

Recommend 0

Waseem

Dec 31, 2018 11:19am

good. Lets make it happen.

Recommend 0

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