THE foundation of Pakistan Steel Mills Corporation Limited was laid in Karachi on July 2, 1973. This giant industrial complex is fully owned by the government. Several attempts have been made by various governments in the recent past to reactivate the steel mills but all the attempts have failed.

The Supreme Court judgment of Aug 2006 rejected the entire disinvestment process of the steel mills as it ignored the profitability aspect and assets of the mill. The SC annulled the sale of the mills to a three-party consortium and referred the matter to the Council of Common Interest after which the matter was shelved.

The present government is not in favour of privatising the steel mills because it believes that this heavy industrial complex is a national asset that is in need of the state’s financial support as well as sponsors/donors. Unfortunately, at present the government is not in a position to bear the cost of revitalising the mills because it is also facing a financial crunch.

In my opinion, Pakistan should explore other avenues to revive the steel mills. We have excellent relations with Russia, which is the successor state to the former Soviet Union. We can approach Moscow either to invest in reviving the mills or help Pakistan find a partner to do so. I am sure an agreement acceptable to all sides can be reached. If this is not possible then the government can opt for a new consortium consisting of Russia, Saudi Arabia, China and the UAE to reactivate the steel mills.

One is confident Prime Minister Imran Khan is aware of the importance of the steel mills in Pakistan’s industrial development.

Prof (Dr) Akhlaq Ahmed

Karachi

Published in Dawn, March 11th, 2020