Pakistan Steel Mill Corporation

Pakistan Steel was incorporated as a limited liability company in July 1968, one hundred percent by the Federal Government. The mills were established with the techno economic assistance by the former USSR (Union of Soviet Socialist Republics), which became operational in stages during 1981-85.The cornerstone of vital and gigantic project was laid in 1973 by 30thDecember the Prime Minister of Pakistan, Zulfikar Ali Bhutto. The project was completed at a capital cost of Rs.24, 700 million.

LOCATION

Pakistan Steel Mills Corporation is located at a distance of 40 km southeast of Karachi, Port Qasim near Muhammad Bin. It is an area of ​​18,660 extends over hectares. That marked the entry of Pakistan into the iron and the best countries producing steel. The largest industry on earth, taking into PSMC with a production capacity of 1.1 million tons of steel production capacity for large world steel market

BACKGROUND

Soon after independence in 1947, it did not take long for Pakistan, to come to the realization, that industrial development and the uprising of the economy, would be impossible, without the possession of the large scale industries in the country, other than that, Pakistan at initial, was not that potential, and not in a position to rely entirely on imports, which could lead to serious setbacks in the country, along with the high import bill, which was impossible to support.

Therefore, in 1968, the Pakistani government has finally decided to introduce a basic steel industry, working with the public sponsor ship. In this sense, the Pakistan government decided that the Karachi Steel Project should be guided in the public sector. In July 2, 1968, Pakistan Steel Mills Corporation was established as a limited liability public sector company, according to the Companies Act, 1913.

At initial, Pakistan steel mills had to get into an agreement, with the USSR (Soviet Union) for the preparation of its feasibility report, into the establishment of a steel mill at Karachi. In 1971, Pakistan and the USSR signed an agreement, under which, the latter agreed to provide techno-financial assistance, for the construction, of a steel mill at Karachi. Pakistan Steel was incorporated as a private limited company in July, 1968, wholly owned by the Federal Government. The Mills were established with the techno-economic assistance by the former USSR, which came into operations in stages, during 1981-85. During 90s the issues of privatization started which is not solved till now. This was Nawaz shrif government at that time who try to privatize some of the industries like PTCL etc.