Court Orders Action After Employee Union Files Petition
KARACHI: The National Industrial Relations Commission (NIRC) in Karachi has issued bailable arrest warrants for Asad Islam, Chief Executive Officer of Pakistan Steel Mills (PSM), and Director Muhammad Akram. The warrants were issued in response to a petition filed by a union leader representing the terminated employees of the state-owned enterprise. The Bin Qasim police have been instructed to arrest the two officials and present them before the court.
The legal action stems from a previous court ruling that mandated PSM to reinstate terminated workers and ensure that their outstanding dues are cleared. The court had emphasized that the affected employees should remain on the payroll until they receive all pending payments. The issuance of arrest warrants highlights growing legal pressure on the management amid ongoing labor disputes.
Mass Terminations and Controversial Restructuring Spark Backlash
In February 2025, Pakistan Steel Mills dismissed an additional 1,350 employees in an effort to reduce its financial burden. According to a PSM spokesperson, the layoffs affected workers from various departments, including drivers, firemen, and equipment operators. Termination letters were sent directly to the employees’ homes, sparking further unrest among labor unions and former workers.
Earlier in July 2024, the federal government officially decided to shut down Pakistan Steel Mills after years of financial losses. The Sindh government was offered 700 acres out of the mill’s 19,000-acre estate to establish its own steel production facility.
Despite these developments, there were signs of potential revival. In a significant diplomatic move, Pakistan and Russia signed a protocol earlier this month to modernize and restart operations at PSM. The agreement was finalized during a visit to Russia by a Pakistani delegation led by Haroon Akhtar Khan, Adviser to the Prime Minister on Industries and Production.
