PM Imran to offer Pakistan Steel Mills to China

[Flight of falcon]

I dont know why some members are getting so emotional over the Steel Mills. If our leaders were half as empathetic towards that industry, it would have been making profit. It was gradually destroyed by PPP and PMLN by inducting thousands of ghost workers and bad policies. Now only a 'Corporate' model will save that industry. No one in Pakistan can provide that sort of corporate model hence we have to ask China to help us.

China can take that risk because there is hardly any risk for them. Did you know China is still working on Balochistan mines? While we all know what happened to Reko Diq.

Once PSM is taken over by China then even PPP will not be able to do anything. And PMLN was in favour of selling all public entities including PSM, PIA. But protests from PPP along with PTI against national interest prevented that.

Talking like a true Patwari and skipping all the facts .... no PML tried not to sell but to give PS to their front man for FREE...... other member here may eat paan but they think with honesty and halal ..... things that you may be allergic to.

 

[niaz]

Why not skip highly capital-intensive industries like steel altogether...import cheap steel from china (or whomever can quote you best price)....and focus on steel processing industries (i.e converting steel into products for consumer use) that generate the most value addition and jobs for every dollar you invest (i.e not so capital intensive and more labour intensive)?

Huge part of why such state-owned steel enterprises in smaller/medium world economies fail is because of the capital sink problem intrinsic to industry that attracts the usual bureaucratic corruption like flies to a bad festering smell.

You are right and it would be economically the right decision at this point. Let us say that it was much cheaper to rent than building a house; would you always like to live in rented accommodation instead of building your own house? The analogy may not be very accurate but it has some similarities.

Steel is the lifeblood of the industry as it is used in virtually every manufacturing activity including the house construction. Hence steel production is directly related to long term national security. Also, steel prices could go up a few years from now making imported steel expensive than local production. It all depends upon the national policy, I for one would not like be depend totally on imported goods.

 

[SQ8]

What a nice Q.
Since the advent of 'shareefain' and their accomplices in civil-military establishment, an establishment of crooks has invaded the roots of this country including our business community which are now reduced to essentially 'rent seekers-money laundrers-under invoicers & tax evaders'. Gone are the days of enterprenaurs and pure businessman. I have seen it all before. Better give it to China. @Oscar

I would say give the Pakistani people to China. Forget steel mills, it will fix everything.

 

[YeBeWarned]

I would say give the Pakistani people to China. Forget steel mills, it will fix everything.

We will corrupt the Chinese , Lets not be cruel to our Chinese counter parts

 

[Nilgiri]

You are right and it would be economically the right decision at this point. Let us say that it was much cheaper to rent than building a house; would you always like to live in rented accommodation instead of building your own house? The analogy may not be very accurate but it has some similarities.

Steel is the lifeblood of the industry as it is used in virtually every manufacturing activity including the house construction. Hence steel production is directly related to long term national security. Also, steel prices could also go up a few years from now making imported steel expensive than local production. It all depends upon the national policy, I for one would not like be depend totally on imported goods.

Yes I mean more in temporary time period during this Pakistan economic recovery period. I just think dedicated focus and approach should first be on where the maximum and more immediate value addition is....so you can replenish and build up the buffers (be it forex or quality and better valued internal liquidity) again.

Then down the road, check and analyse where the strategic capital-intensive decisions lie when you can again afford to spend time and focus there. World economy itself is changing lot these days so stuff like that needs the best ppl thinking and planning it....but its more long term thing for Pakistan economy.

Doing other way around in current scenario is like putting cart before horse.

Pakistan has serious underlying problem (Low Gross capital formation %) a long time now partly because of this and other reasons...because it consistently misses out on getting good at the easier fruit on lower branches by wanting instead to go for it all (helps in PR in short term politics, but not much else).

This has consequences of mis-prioritisation/mis-allocation for tier 3+ industries as far as ROI gestation + strategy etc (when compared to what you got in the current frame of overall bulk ppl in society and tier 1, tier 2 easily accessed, more readily value+results producing industries and services for your population and world market).

 

[jupiter2007]

Did IK or government made any statement about selling or handing over STM to China?
Why are you all wasting your time discussing this news without confirmation from government officials?

 

[Safriz]

Rubbish decision .....
Why not sell the whole country to China?

 

[Flight of falcon]

Rubbish decision .....
Why not sell the whole country to China?

Pretty idiotic statement... China owns most as a percentage of the world national debt including America’s .They are the largest treasury bond holders but you will never hear Americans insulting their country. This characteristic is unique to Pakistanis ..

 

[RAMPAGE]

Hon Rampage,

Iron/steel manufacture is about 3000 years old and even modern processes such are Arc Furnace & Oxygen Furnace do not classify as ‘Rocket Science’ hence technology is not a problem. The problem is production cost and the economy of scale.

Chinese steel plate is currently the cheapest in the world. Firstly because of the lower labor cost and secondly because the rapidly expanded Chinese steel production resulted in surplus capacity. This is evident from the fact that Chinese steel output increased from about 66-million tons in 1990 to more than 800-million tons by 2014.

Western Steel Manufacturers are unable to compete and several Steel Mills have been forced to close down. Steel manufacturers have been accusing China of ‘Dumping’ that is, selling at a loss to keep their labor force employed, for quite some time. India, Indonesia & the USA have increased import duty on Chinese steel imports to support the indigenous steel industry.

PSM is 50 years old and needs a complete renovation. Capital outlay for modernization of an integrated steel mill like the PSM would be at least $1-billion if not more. (In Dec 2018, Vedanta Group of India announced setting up of 1-million ton capacity Steel plant in Jharkhand for $3.13-billion)

IMHO, it would be close to impossible to find a Pakistani entrepreneur to risk that level of money into renovating PSM. However, steel being the backbone of the industry, you would not like to depend entirely on imports. I would, therefore, say that seeking Chinese assistance is a very good option. But would China accept this offer?

How about the state provide assurances, especially with regards to orders, to potential Pakistani buyers?

 

[beijingwalker]

I think China has steel overcapacity problems.

 

[Yankee-stani]

I think China has steel overcapacity problems.

I mean its not the first the time the Govt of Pakistan has offered this to the PRC they tried several times in the 2000s and 2010s Chinese have no interests in an old Soviet era Steel Mill

 

[gutto786]

Why not hand over Pakistan to China?

Thats a very good idea

 

[blueazure]

I was neither a PM nor a general in any point of time in history of Pakistan, so how I screwed Pakistan?
Let's get this straight, it's the politicians and the Generals (plus ruling elite) which has screwed Pakistan --- Don't put the blame on common people.

this person maximum warrior is a PTI troll living a comfortable life in holland, his only job is to personal attack any opposing view against his great khan and label it as follows ;-

1. you are a dumb patwari

2. you screwed the country , now pay the price

just look at his profile pic , putting a sikh individual whose forefathers murdered millions of muslims in 47


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i cannot believe the level of ineptitude by PTI trolls here,,

1. many local industrial groups HAVE offered the govt to take over the PSM and turn it around

2. cash is not a problem for any local group and it wont take 6 bn USD to turn it around FFS

3. Engro group alone has 70bn PKR lying in banks

 

[shah_123]

I would say give the Pakistani people to China. Forget steel mills, it will fix everything.

We already have a generation which is obsessed with west and their values, now we have started to see new one obsessed with China ---- Instead of giving Pakistani people to China, why not give only the ruling establishment to China to update their software, they are the trouble makers.

We will corrupt the Chinese , Lets not be cruel to our Chinese counter parts

They are already corrupt --- ask those who have business dealings with them.

this person maximum warrior is a PTI troll living a comfortable life in holland, his only job is to personal attack any opposing view against his great khan and label it as follows ;-

1. you are a dumb patwari

2. you screwed the country , now pay the price

just look at his profile pic , putting a sikh individual whose forefathers murdered millions of muslims in 47


------------------

i cannot believe the level of ineptitude by PTI trolls here,,

1. many local industrial groups HAVE offered the govt to take over the PSM and turn it around

2. cash is not a problem for any local group and it wont take 6 bn USD to turn it around FFS

3. Engro group alone has 70bn PKR lying in banks

I know that most of these PTians reside in west -
I normally try to avoid their running commentary.

Mr Khan is just talk, he is just another PM. Instead of fixing the real issues, he is going to sell (like other Pms) our national Assets. ---- One day we will hear that a province of Pakistan is also put on sale.

 

[blueazure]

We already have a generation which is obsessed with west and their values, now we have started to see new one obsessed with China ---- Instead of giving Pakistani people to China, why not give only the ruling establishment to China to update their software, they are the trouble makers.


They are already corrupt --- ask those who have business dealings with them.

these kids havent seen or been to china , all they know is CPEC and pak cheen dosti songs

chinese are the most savage businessmen you can work with , aik aik ruppe k peechay maarne wali qaum hai ye,