Reviving the Pakistan Steel Mills

[SpArK]

Reviving the Pakistan Steel Mills​

Very few third world countries produce steel. Establishing steel manufacturing in Pakistan was a major feat. Acquisition of steel manufacturing technology in the 60s and 70s was like acquiring a nuclear processing plant plant today. From 1947 to 1973 Pakistan struggled with all Western powers to establish a steel plant in Pakistan. No country, not even the US, or the SEATO or CENTO allies sold a steel plant to Pakistan. American, British and French private firms were prohibited from exporting plants and steel manufacturing technology to Pakistan.

A letter sent to Pakistan Steel by Ministry of Industries and Production bearing subject “Privatization Plans,” said that “In a recent meeting chaired jointly by president and prime minister the following has been deliberated upon the presentation given by the Privatization Commission: Outsourcing the management of the Pakistan Steel along with the options of floating 10% to 20% shares to Chinese or Russian investors. The Ministry of Privatization to embark upon this proposal in collaboration with the relevant Ministries and Pakistan Steel Mills.”

The Pakistan steel mill is Pakistan’s largest industrial complex. The plan for the steel mill was created in 1968 by President Ayub Khan, but it was really the work of Zulfiqar Ali Butto’s visit to the USSR in 1972 that consecrated the deal.

Pakistan Steel Mills supported Pakistan’s defense production in producing tanks, missiles, sugar mills, general construction, bridges, and of course Pakistan’s nuclear programs. With a boom in construction the steel mill will be seminal in supporting the new economy as well as the various pipeline projects.

The Pakistan Steel Mill produces 1 million tons of steel. It was to be upgraded by the Russians to 2 million and then upgraded by the Chinese for 3 million tons. Those expansion projects are the need of the hour.

In 1968 the Government of Pakistan decided that the Karachi Steel Project should be sponsored in the public sector, for which a separate Corporation, under the Companies Act, be formed. In pursuance of this decision, Pakistan Steel Mills Corporation Limited was incorporated as a private limited company to establish and run steel mills at Karachi. Pakistan Steel Mills Corporation concluded an agreement with V/o Tyaz Promexport of the USSR in January, 1969 for the preparation of a feasibility report for the establishment of a coastal-based integrated steel mill at Karachi.

In January 1971 Pakistan and the USSR signed an agreement under which the latter agreed to provide techno-financial assistance for the construction of a coastal-based integrated steel mill at Karachi. The foundation stone of this vital and gigantic project was laid on 30th December, 1973 by the Prime Minister of Pakistan Zulfikar Ali Bhutto. The mammoth construction and erection work of an integrated steel mill, never experienced before in the country, was carried out by a consortium of Pakistani construction companies under the overall supervision of Soviet experts.

Pakistan Steel not only had to construct the main production units, but also a host of infrastructure facilities involving unprecedented volumes of work and expertise. Component units of the steel mills numbering over twenty, and each a big enough factory in its own right, were commissioned as they were completed between 1981 to 1985, with the Coke Oven and Byproduct Plant coming on stream first and the Galvanizing Unit last. Commissioning of Blast Furnace No.1 on 14th August, 1981 marked Pakistan’s entry into the elite club of iron and steel producing nations.

The project was completed at a capital cost of Rs.24,700 million. The completion of the steel mill was formally launched by the then-President of Pakistan on 15th January, 1985. Pakistan Steel today is the country’s largest industrial undertaking, having a production capacity of 1.1 million tonnes of steel.

In 1968 the Government of Pakistan decided that the Karachi Steel Project should be sponsored in the public sector, for which a separate Corporation, under the Companies Act, be formed. In pursuance of this decision, Pakistan Steel Mills Corporation Limited was incorporated as a private limited company to establish and run steel mills at Karachi. Pakistan Steel Mills Corporation concluded an agreement with V/o Tyaz Promexport of the USSR in January, 1969 for the preparation of a feasibility report for the establishment of a coastal-based integrated steel mill at Karachi.
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Reviving the Pakistan Steel Mills|Islamabad Globe

 

[indushek]

Eh Benny pardon my ignorance but the article seems to be talking about the history of Pakistan Steel Mills but where does the reviving part come in?? I mean the ramping up of production capacity from 1 million tonnes to 2 and 3 were to happen some time back was it?? The heading of the article and the content seem to be entirely differing.

 

[SpArK]

Eh Benny pardon my ignorance but the article seems to be talking about the history of Pakistan Steel Mills but where does the reviving part come in?? I mean the ramping up of production capacity from 1 million tonnes to 2 and 3 were to happen some time back was it?? The heading of the article and the content seem to be entirely differing.

A letter sent to Pakistan Steel by Ministry of Industries and Production bearing subject “Privatization Plans,” said that “In a recent meeting chaired jointly by president and prime minister the following has been deliberated upon the presentation given by the Privatization Commission: Outsourcing the management of the Pakistan Steel along with the options of floating 10% to 20% shares to Chinese or Russian investors. The Ministry of Privatization to embark upon this proposal in collaboration with the relevant Ministries and Pakistan Steel Mills.”

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