Pakistan Steel Mill A Blow To Economy

1960 words - 8 pages

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 ...view middle of the document...

The whole process of privatisation was considered as the ‘largest dacoity’ in the history of the country. Moreover the employees of the Mills raised a lot of hue and cry against the government’s decision. The reaction against the government’s unwise decision was intense; it rocked the government. The Transparency International-Pakistan concluded that the deal was not fair as it was not acceptable for some competent bidding parties. On June 23, a nine-member bench of the Supreme Court annulled the sale of the country’s largest industrial unit to a three-party consortium due to irregularities in the process of privatisation. The apex court concluded that the government decision in relation to Mills had been taken in unexplained haste, ignoring profitability aspect and assets of the Mills and directed the government to refer the matter to the Council of Common Interests within six weeks. The apex court made it clear that squandering of national assets would not be tolerated.
Economic Problems Of Mill.
Pakistan Steel Mills is facing a severe financial issue nowadays. It is operating in a tough competition atmosphere. It is facing loss of billions of rupees. It has to pay off huge bank loans and government taxes. It is, in fact, on the verge of collapse and bankruptcy and has asked government for 10-12 billion rupees bailout package to come out of crisis while Cabinet Committee on Reforms has approved a bailout package worth Rs6 billion to tackle the situation.Following are the economic problemsat the time of establishing and hereafter.
No Back up Financial Support
The country started its journey of industrialization from zero. It started at an estimated cost of Rs14.287 billion and commissioned at a cost of Rs 24.7 billion in 1985. The average production efficiency of the mill is not more than 70 to 80 percent probably because of the inferior quality of the machinery. The Pakistan Steel Mills manufactures industrial material such as steel, coke, pig iron, rolled billets, long rolled steel, hot and cold rolled coils and sheets, galvanized coils, corrugated sheets and heavy iron products. Pakistan Steel too suffered greatly and incurred financial losses.
Powerful Mafia Involved in Corruption.
The Mills has become a residence of the powerful mafia involved in corruption. The Federal Production Minister Anwar Ali Cheema wants that still mills should be privatised because of unbearable financial burden. He claims that Pakistan Steel Mills is a sick unit ‘whose losses are getting out of control’. The question is: who is responsible for the huge losses in the Mills? Is this a deliberate attempt to create an atmosphere for the privatisation of the Mills?
Absence Of CEO Of Steel Mill.
Unfortunately this Corporation has been working without a permanent and full-fledged chief executive officer for the last several months while the losses are increasing day by day. It is stated that a particular mafia is trying to make excuses to...

Other assignments on Pakistan Steel Mill -A Blow To Economy

The Design And Efficiency Of Wheat Roller Mill

330 words - 2 pages bearings come out with the rollers, simple release of 4 bolts, and the rolls lift right out. Ten minutes, as opposed to half a day. Most of the competitors' grain mills require that you literally take the entire unit apart, and new bearings are usually required when the rolls are regrooved. The quality control of flour begins when the wheat is received at the WHEAT ROLLER MILL. The wheat is tested for its protein content and for its ash content. The ash

Eic Analysis

4650 words - 19 pages Mill complex at Jamshedpur, Eastern India. The enterprise has undergone a modernization programme costing $2.3 billion, resulting in production of steel at the lowest cost in the world. Being a large entity does not stop things from being subject to scrutiny and internal audit. They are regularly implemented with the help of committees who report to the selected members from the senior management. The company is dedicated to providing laudable

Bjhkh

2668 words - 11 pages . Given the state of the economy of Pakistan in 2010, troubled as it is; ideally it would be more desirable to look at the governance issues at macro level for Pakistan. As a famous economist, Dr Shahid Javaid Burki- a long observer of Pakistan’s economy has recently stated “Pakistan can generate a greater bounce in its economy than India by creating better governance. It has occurred before in the country’s difficult economic history and could

Business In Other Countries

1529 words - 7 pages policies. Lastly, Pakistan has mixed economy as well. When selling in other countries it is important to know the type of economic system you are dealing with. Most countries have mixed economies but with different levels of command in them. It would be easier to sell in Japan where more of a free market exists because that type of economy welcomes new comers. In a mixed economy with more command control then it may be harder to enter the market

Doc Doc, Docx, Pdf, Wps, Rtf, Odt

1805 words - 8 pages effect on 16th December,1971). Through the Order, the eastern branch of the former State Bank of Pakistan at Dhaka was renamed as the Bangladesh Bank as a full-fledged office of the central bank of Bangladesh and the entire undertaking of the State Bank of Pakistan in, and in relation to Bangladesh has been delivered to the Bank. Bangladesh Bank has been entrusted whit all of the traditional central banking functions including the sole

House Of Tata Acquiring Global Footprint

1225 words - 5 pages advanced nations. Jamsetji Tata had three great ideas of his life: setting up an iron and steel company, generating hydroelectric power and creating an institution that would tutor Indians in the sciences. He conceived of policies and institutions far more advance than that of his times. He was born into a Parsi family of priests. He followed his father’s footsteps into business as his father was the first one in his family to start a business

Imf And Pakistan

1186 words - 5 pages Assistance framework to help Pakistan manage the immediate effects of the floods. Background Until the economic crisis of 2008, Pakistan had enjoyed a relatively robust economic performance since 2001. Warning signs emerged in 2007 and early 2008, as inflation began to rise and external imbalances expanded. Conditions deteriorated in mid-2008 with the sharp increase in international food and fuel prices and worsening of the domestic security

Global Warming Is Good For You: Critique

750 words - 3 pages Critique: Global warming is good for you In the 2002 publication of the Guardian we find an interesting article written by Duncan Steel, from the University of Salford. In this article he takes an unorthodox stand on a rather cliché topic, claiming that global warming does in fact prove beneficial to human civilization and development by preventing a far worse ‘global freeze’. An interesting viewpoint, but the reasons he cites to justify his

Demography East Pakistan 19511961

679 words - 3 pages THE ECONOMIC WEEKLY A p r i l 15, 1961 Migration from East Pakistan (1951-1961) (Contributed) It is obvious from the phenomenal increases in' the populations of Assam, West Bengal and Tripura in the 1961 Census that they have received migrants from East Pakistan. What has been the extent of this migration? This question will not be satisfactorily answered until Indian Tables relating to sex, age, birthplace, periods of continuous

Industrial Structure

862 words - 4 pages and timber, as well as by activities such as farming and fishing. A company in a primary industry can also be involved in turning natural resources into products. Primary industry tends to make up a larger portion of the economy of developing countries than they do for developed countries. See also service industry, secondary industry. Read more: http://www.businessdictionary.com/definition/primary-industry.html#ixzz2IYnAvLBa Secondary

Tata

378 words - 2 pages any attempt to generalize about its physiography is inaccurate. * India shares its borders with Pakistan, Bangladesh, China, Bhutan, Sri Lanka, Nepal and Burma. * TATA Motors: The great diversity, landforms provided sufficient resources to the company and also helped Tata to expand its distribution networks to neighboring countries. Economy * India, with the second highest population globally, possesses a thriving world economy

Similar Documents

A Roadmap To The Philippines' Future: Toward A Knowledge Based Economy

666 words - 3 pages Reaction Paper: A Roadmap to the Philippines' Future: Toward a Knowledge-Based Economy The presentation discussed basic information about the Philippines' plan on building the Knowledge-Based Economy (KBE) as part of the Medium Term Development Plan by the Arroyo administration. In the discussion, the author identified the four pillars of KBE which shall serve as the foundation for knowledge-driven development process. It was emphasized in

Labor Essay

381 words - 2 pages the situation from getting any worst. The still replace the strikers with new workers and there was not anything that the strikers can do about it. The strike ended up being a failure and after fighting for four months a lot of the strikers decided to cave in and accept the pay cut and continue to work for the steel mill. But most of the striker quit the union altogether.

Ecop1003 Essay

1297 words - 6 pages industries have instructed about fifty antidumping exercises against the trade of EU steel industries to protect its domestic steel businesses (Lane 2002). National security is another explanation why governments should limit free trade. It is clarified that the “free trade undermines national autonomy and state control over the economy by exposing the economy to the vicissitudes and instabilities of the world market and exploitation by

Analysis For Modern Agricultural Farm

1400 words - 6 pages agriculture (N. Ahmed 1). In another words, agricultural industry is the backbone industry in Pakistan. The government of Pakistan has therefore “identified that agriculture is one of the priority areas to be focused in order to support the economy (“Pakistan- Language, Religion, Culture, Customs and Etiquette” 1)”. Under this background, it is apparent that the Modern Agricultural Farm is facing a great opportunity to develop with the support