Essay on Pakistan Steel Mill -a Blow to Economy

1953 Words Apr 29th, 2016 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 the pioneer in the engineering industries of the
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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

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