Pakistan Steel Mills - Nationalization

Nationalization

The privatization had the disastrous effects on steel mills, and it was lost by the private sector due to their inability to run such giant large-scale operations of steel mills. Under private sector, the steel suffered loss in its net worth and declining of producing capacity of the steel mill. The Economic Coordination Committee (ECC) was forced to approved a bail out package after the private sector, the Tuwairqi Steel Mills pulled off its investment from steel mills instead established another steel mill industry to compete against the steel mill.

Despite all its problems, the steel mills is a paradigmatic employer and would rather see itself run into the ground than mistreat its long standing employees. In the midst of all the troubles that it is facing, the mill started issuing letters confirming their jobs and start producing the heavy steel and iron materials. After leading to an infernally long protest and inability proved by the private sector, the government of Prime Minister Yousaf Raza Gillani activated the nationalization programme after accepting the recommendations, despite protest lodged by the Finance minister Abdul Hafeez Shaikh.

In 2011, the steel mill was put under the management of government-ownership, expanded and re-structured the board of directors would be restructured and expanded, from the current nine to twelve members as well as approving another bail out plan. In matter of weeks, the private-sector voluntarily handed over the operations of steel mills to government-ownership management, a move that was widely appreciated in the public society and workers' unions. Since under the government-ownership, the steel mills infrastructure and available capacity was restructured and expanded. In 2012, Ukraine announced to provide the technological development and help in restoration of raw materials supply chain after viewing the performance of steel mills. The Ukrainian Ambassador quoted, "for major operational units of Pakistan Steel Mills is remarkable". The Ambassador of Ukraine Volodymyr Lakomov said that Ukraine is keen to make business relationship with Pakistan and the steel mill PSM will be a "symbol of friendship" between the two countries.