Thursday, 21 July 2011

Pakistan Industrial Development Corporation (PIDC), National Fertilizer Corporation of Pakistan (NFC), Steel Mill

It was set up in 1950. In 1952 it started its work. It had completed 60 projects in 1973.

Capital Structure :-
It was set up with authorized capital of Rs. 10 million.

Performance :-
During the period of 1952 to 1974 it expanded the industrial base. It developed the heavy industries like fertilizers, ship building, jute mill, cement factories etc. PIDC was regarded a symbol of inspiration to the private sector.

Problems :-
The nationalization of 1972 affected performance of PIDC very badly. Now it is also facing the financial problems. It has to depend on the Annual Development Plan Funds. It can not set up project valuing Rs. 50 lacs or above without government approval.

Suggestions :-
The government should increase the funds of Pakistan Industrial Development Corporation (PIDC). The Pakistan Industrial Development Corporation (PIDC) should be encouraged to established agro base industries. It should also be encouraged to take smaller projects. The losses suffered by Pakistan Industrial Development Corporation (PIDC) units in backward areas.

It was set up in 1973 at Multan. In June 30, 1980. Its authorized capital was Rs. 1000,00 million and paid up capital was Rs. 700.23 million. This project is completed at a cost of Rs. 2243 million. Some modification is also made in the plant and now it is operating around 90% capacity.

The steel mill project was started with the help of Russia on December 30, 1973. It has a great importance in our history. Because without steel industry we can not bring industrial revolution in the country.

Capital :-
The cost of steel mill project is Rs. 25.5 billion. Its productive capacity is 1.1 million tons.

1. Importance for Industrial Development :-
The annual production capacity of steel mill is 1.1 million tons which can he expanded to over 2 million tons.

2. Development of Engineering Industry :-
The production of steel mill will improve the engineering industry of Pakistan.

3. Increase in Employment :-
It provided the job to twenty thousand persons for the construction work. Further 15,000 persons will be required to operate the plant at fully capacity.

4. Self Reliance :-
The steel mill has provided the sound base for industrialization and reliance to industrial sector.

5. Foreign Exchange Savings :-
Our imports will be reduced due to steel mill product and it will save a lot of foreign exchange. It has saved 3.5 billion foreign exchange during 1999-2000.

6. Supply of Electricity :-
It is also supplying surplus electricity to the Karachi Electricity Supply Corporation.

7. Important for Construction :-
The Pakistan steel mill has also provided the iron for the construction work. The production of electrical and mechanical instruments have been increased.

8. Importance for Agriculture :-
The production of tractors, thrashers and tube wells is now easy due to the steel mill production. It will increase the production of agriculture sector.

The government of Pakistan has protected the steel mill from foreign competitions through import duties. But still it is suffering loss due to many reasons.


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