After independence in 1947, it did not take long for Pakistan to come to the realisation that progressive industrial and economical development would be impossible without the possession of a self-reliant iron and steel making plant. The dependence on imports would cause serious setbacks to the country along with an extortionately high import bill.
The initial idea for a domestic iron and steel mill was put forward in the first five year plan of Pakistan (1955–1960). Debates over the manufacturing process, supply sources of machinery and raw materials, plant site, domestic ore versus imported ore, ownership pattern and foreign financing kept the project on hold.
In 1968, the Government of Pakistan decided that a basic steel industry should be established in the public sector. As a result, on 2nd July 1968, Pakistan Steel Mills Corporation was set up under the Companies Act, 1913.
In January 1969, Pakistan Steel concluded an agreement with V/O Tiajproexport of the then USSR for a feasibility report. Subsequently, in January 1971, Pakistan and the USSR signed an agreement to provide techno-financial assistance for construction.
Foundation Stone of Karachi Steel Mills
The foundation stone for this gigantic project was laid on 30th December 1973 by Prime Minister Mr. Zulfiqar Ali Bhutto. Construction work was carried out under the supervision of Soviet experts.
Commissioning of Blast Furnace No. 1 on 14th August 1981 marked Pakistan's entry into the elite club of iron and steel producing nations. The project was completed at a capital cost of Rs. 24,700 million.
Today, Pakistan Steel is the country's largest industrial undertaking with a production capacity of 1.1 million tonnes of steel. Its unloading system at Port Qasim is the third largest in the world.
The completion of Pakistan Steel enabled local contractors to gain advanced technical expertise, later utilized in major projects within Pakistan and abroad.