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Pakistan Steel Mill The Pakistan Steel Mills, PSM, is the state-owned producer of long rolled steel and

heavy iron products in Karachi, Sindh Province of Pakistan. Capacity The Pakistan Steel Mill is the country's largest industrial undertaking having a production capacity of 1.1 million tones of steel however only 18 percent of this capacity is actually in use. Inputs The enormous dimensions of the project can be visualized from the construction inputs which involved the use of 1.29 million cubic meters of concrete, 5.70 million cubic meters of earth work, 330,000 tones of machinery, steel structures and electrical equipment. Its unloading and conveyor system at Port Qasim is the third largest in the world and its industrial water reservoir with a capacity of 110 million imperial gallons per day is the largest in Asia. A 2.5 km-long sea water channel connects the sea water circulation system to the plant site with a consumption of 216 million imperial gallons of sea water per day. Corruption in Pakistan Steel Mills Steel mill is considered as the backbone of any nation but Pakistan steel mill os heading towards unrestrained corruption that includes: Declining Production The PSM production attainment was 82% of capacity utilization in the year 2007-08. It experienced a decline to 64% in 2008-09, and further to 40% in 2009-10. In the following year, 201011, the production remained 35% mostly due to shortage of raw material like iron ore and coal etc that was further declined to 25% in July, 26% in August and 15% in September, 2011. A bailout package of Rs20 billion has been requested to save this giant from bankruptcy. Declining Sales The sale of the PSM products is concerned, it was recorded Rs42.938 billion in 2007-08 and has been on decline afterward with Rs34.340 billion in 2008-09 (the start of PPP government), Rs23.832 billion in 2009-10 and Rs27.379 billion in 2010-11. Declining Profits The profits of the PSM in 2007-08 was Rs2.38 billion whereas the following years saw the mill continuously running into loss with no let up as it recorded a loss of Rs26.53 billion in 2008-09, Rs11.52 billion in 2009-10 and Rs11.49 billion in 2010-11. The loss incurred in the first three months of the running financial year has been recorded to the tune of Rs4.30 billion.

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