With the goal of spurring economic growth, Pakistani officials have been working to increase steel manufacturing capacity in the country. With their latest project, officials are hopeful that they’ll succeed in their goals, which will bring an added boost to the local economy and spur job growth in an area that has seen high unemployment rates in recent years. The project comes as part of a larger effort to reduce Pakistan’s reliance on other countries for its steel supply and also to help drive economic development through the creation of jobs that pay well, especially considering that more than 60% of Pakistanis live on $2 per day or less.
The steel industry can be found in almost every sector of the economy, and Pakistan is no exception. The country has long been known for its steel production, but the industry has been expanding in recent years thanks to new investment from companies like Bilal Steel Mills Limited (BSML). It’s good news for the country’s economy overall, which relies heavily on steel and steel-related products as an export earner and economic driver. What does this mean for the average Pakistani? Let’s find out…
Location of the new steel mill
Pakistan has a new steel mill, built with the help of China and Saudi Arabia. The $2 billion plant is located in the coastal city of Karachi and will bring much-needed jobs to the area. With a production capacity of 3 million tons annually, it will produce enough steel for cars, ships, and other equipment. The project is supported by Beijing as part of its Belt and Road Initiative – a global trade plan designed to improve China’s ties with other countries by investing in infrastructure projects in partner nations along key trading routes.
The company behind the mill
Hamdard Haskins has been a partner of the Pakistani steel industry for over 40 years. Starting as a trader of iron and steel, they now own two mills and an office in Karachi. They are also one of the largest manufacturers of steel in South Asia.
Hamdard Haskins is proud to announce their latest project: a new state-of-the-art mill that will be able to produce 2 million tonnes per annum (mtpa). The construction began on March 3rd, 2017, and is slated for completion by December 2017. The new plant will be capable of producing billets, slabs, hot rolled coils, cold rolled coils, tin plates, and sheets.
What the mill will produce
This new steel mill is a joint venture between some of the leading industrial players in Pakistan and will have the capacity to produce up 5 million tons of steel per year. The mill will be built in the coastal town of Gadani near Karachi, which has been plagued by illegal dumping for decades. Bringing this mill on-stream should help not only alleviate that problem but also provide jobs for at least 10,000 people during construction and 2,500 permanent employees once operational. With the demand for steel still high around the world, especially from infrastructure projects in Asia, it’s hoped that this new mill will create more economic activity and more jobs not just in Gadani but in other industries as well.
How many jobs the mill will create
Steel plants are capital-intensive and create a significant number of jobs. The new mill, which is being built by the Pakistani government’s Fauji Group, will produce 3 million metric tons of steel annually. To put this in perspective, each metric ton of steel requires about two metric tons of iron ore and 500 kilograms of coke. Thousands of jobs will be created during construction, as well as hundreds when the plant opens in 2020.
The economic impact of the mill
The steel mill opened in September 2016 and is already generating major economic benefits for the region. It has created more than 400 jobs and is expected to employ up to 1,600 people. The mill’s construction also helped create new infrastructure for the surrounding area. One of the first buildings constructed was a school for girls which will be free for all students.