Pakistan Steel Mill -A Blow To Economy

Introduction
Sixty three years ago the world's map underwent a great change and the Indian subcontinent was divided into two independent states: India and Pakistan. It did not take much time to change the maps nor did it affect the neighboring countries in any great way, but this division was the result of an intense and dedicated struggle by millions of people of the subcontinent.
Background
At the time of partition, the areas comprising Pakistan received only five per cent of the subcontinent's industry. . The foundation stone of Pakistan Steel was laid by the then Prime Minister Zulfiqar Ali Bhutto on 30th September 1973. Pakistan Steel is the pioneer in the engineering industries of the country. Experts agree that setting up of a Steel Mill was primarily not for earning profits but to give an impetus to the engineering industry for the country's economic progress.The government established the Pakistan steel mills corporation thinking that that economic growth would not be possible without a self sufficient iron and steel making plant.They believed that depending on imported steel would cost the country too much. How wrong could they have been? They would never have believed that it would come to such a point that the Steel mills would ask for steel imports to be banned so that it could sell its steel at a higher price.It may be interesting to note that Pakistan Steel Mills remained a profitable organization from 2001 to 2008. Even then the Musharraf regime, in May 2006, privatised it. Saudi Arabia-based Al Tawairqi Group of companies, Russia’s Magnitogorsk Iron & Steel Works and local firm Arif Habib Securities paid a meagre amount of Rs21.6 billion ($362 million), or Rs16.8 per share, to take control of Pakistan’s largest steel manufacturing plant. It is believed that privatisation of the Steel Mills was