Pakistan Steel Mills Amid Crisis

The steel industry is one of the most progressive and innovative industries in today’s dynamic and competitive world that caters to the need of every individual and every aspect of life from a micro level to the macro level and fulfils the demand of almost all industrial sectors and therefore is a key element responsible for driving the economy of a nation. Pakistan Steel Mills Corporation (PSMC)—once a highly profitable organization and considered one of the largest and sole steel producers in Pakistan—is on the verge of collapse and passing through critical stages of its survival. Despite its monopoly and vast potential to expand and grow, PSMC has not only lagged far behind in comparison to its neighbouring nation, but has also been unable to meet the demand of its own nation. This study attempts to explore and analyze the pros and cons of its current deteriorating condition by considering the various factors and challenges faced by PSMC for the last few years and in particular the consequences of the unsuccessful post-privatization attempt made by the government. Numerous apparent and inherent factors are attributed to this failure, namely, the high bureaucratic influence, financial irregularities, managerial incapabilities, inefficient management techniques, etc. In addition, the role and impact of other steel sources such as ship-breaking, steel melting, imports, etc., are also taken into account, that, if carefully managed and controlled, can help PSMC come out of its dilemma.