THIS is with reference to the report ‘Russia keen on setting up new steel mill in Karachi’ (Sept 19), according to which the government is considering a proposal to establish a new steel mill in Karachi with Russian cooperation.

For nearly a decade, Pakistan Steel Mills (PSM) has stood idle, a monument to the country’s industrial failure. Once a pillar of the national economy, PSM has been closed since 2015, weighed down by a staggering debt.

Despite two decades of attempts to privatise it, no buyer has shown serious interest, and the PSM continues to bear testimony to missed opportunities and massive mismanagement in a vital matter.

The need for a functioning domestic steel industry is indisputable. However, will the plan succeed where past efforts failed? Will the government be able to ensure transparency, efficiency and accountability across the board? These were the very qualities that were sorely lacking in PSM’s operations.

For the new venture to thrive, it must embrace modern technology, employ global best practices, and prioritise pro-

ductivity. A leaner, more efficient operation could help the mill become competitive both locally and internationally. Furthermore, strategic oversight and sound financial management will be key to preventing the mill from becoming another drain on the national exchequer.

No doubt, the potential benefits are immense. A functional steel industry could serve as the backbone for infrast-ructure development as well as industrial growth.

By producing steel domestically, Pakistan may reduce its dependence on imports, easing the strain on its foreign reserves and trade deficit. As such, the project could be more than just a steel mill; it could be a cornerstone of Pakistan’s broader economic recovery.

However, optimism must be tampered with realism. Pakistan’s economy is under immense pressure, and the country simply cannot afford another failed project. There is no room for mismanagement or political interference.

If the proposed project does go thro-ugh, the government’s resolve will be tested every step of the way. A new steel mill holds great promise, but it also carries significant risks.

If managed properly, the vital project could do wonders, but if past mistakes are repeated, it will simply be a disaster.

Gulab Umid
Turbat

Published in Dawn, September 22nd, 2024