p r e f a c e steel mill complete report updte

7/31/2019 P R E F a C E Steel Mill complete report updte

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AN INTERNSHIP ON PAKISTAN STEEL

P R E F A C EThe good name and fame associated with business graduates are

attributed to the food high level of studies, both inside the classroom and inpractical field environment. This aspect has made them prominent among

other students. The students of business administration are not restrictedto the bookish neither teaching nor they are required to become crammingparrots. They are made to observe how theory is transformed into practicaland how bookish principal is applied to different situations. Our departmentfaculty believes the saying practice makes a man perfect. It immensepleasure for me to compile a comprehensive report on the historical view.Establishment, objectives, financial analysis and ratio analysis of the biggiant industry Pakistan Steel mills During B.S.P.A program, every student isprovided opportunity for internship I variety of trading, manufacturing, socialand service organizations.

I feel it privileges that my internship in-change and placement selected

for me internship in the Pakistan Steel. For completion of my internship Istayed at head office of the company in Karachi. I made studies ondifferent department of the organization. I conducted the financial andration analysis of the organization of last five years. Company Staffcooperation with me was appreciable. They provided me all relevantinformation that helps me to complete the report successfully. I also studythat how the different sections perform their activities. During my study Isaw that the organization is making immense activities to meet the steelrequirements of the country and to make good environment of competitionin steel sector. The company has renders all type of services to satisfy itscustomers. I am not hesitating to say that I really learned a lot about the

company during my assignment as internee.

University Of Karachi 1


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AcknowledgementWe are very thankful from the core of my heart to honorable

Chief Executive Officer, Pakistan steel, for providing me

opportunity for training and whos intelligent, wise and soundleadership has converted manpower in to wining combination by this

industry into a Gold mine.

We wish to express my deep gratefulness to MR. HAMID

PERVAIZ, APEO (A&P) for his consideration and supervision. It was

a memorable time in Pakistan Steel due to his kind concern.

We are also thankful to MR. RAZA MOHAMMAD TUNIO,

Incharge (HRD) andMR. YOUSUF AYUB, Dy. Manager/ Incharge

(In-Plant Training) for his precious advice and for the great

encouragement and cooperation, because of which we have

successfully completed our internship training atPakistan Steel

where We learned a lot.



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University Of Karachi

Serial # Description Page #

01 Executive Summary 04

02 Introduction 05

03 History 07

04 Vision and mission 10

05 Objectives 11

06 Quality 13

07 Departments visited 15

08 Administration and Personnel 16

09 Industrial Relations Department 19

10 Law Department 22

11 Hierarchy 24

12 Conclusion 28

13 Suggestions 29

3


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EXECUTIVE SUMMARY



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Prior to detailed description, I am stating the summary ofinternship report. Basic purpose behind this is to give a clear view of thereport and about the efforts that have been taken to complete the program.I were assigned Pakistan Steel to work there as internee for the practicalexposure. My Internship was started from November 14, 2011 to

December 9, 2011 with aim to study each and every aspect oforganizational setup departmental working and the working process and thedocumentation proceed by the giant organization. The multibillion-rupeeproject of Pakistan steel is not only fulfilling the steel requirements of thecountry but also offering different training programs to its employees butalso the students from different universities of different subjects. I being thestudent B.S.P.A was deputed in Administration and personnel, Marketing,Public relation, Industrial relation, Law, Finance and Account to observe thefunctioning of these departments.

The report in hand consists of my four weeks experience

during internship. The report starts with introduction of the organization,which covers detailed history and background, production capacity andproducts downstream industry, organizational structure and some otherimportant aspects. After there are functions performed by differentdepartments working in the organization. Financial statements andfinancial analysis of Pakistan steel is also an important component, whichreflect the performance of the organization.

As we all are aware that development and growth of anycountry is largely dependent upon the iron and steel industry. So theimprovements and development of that industry is of much importance for

any country and especially the developing countries like Pakistan. Pakistansteel is working well in less resource but due to our political structure isdisturbing the strategies of Pakistan steel. Pakistan steel has a greatbeneficial effect on national economy. It has instrumental in creating new

job opportunities. It is the base for downstream industry in the country. ThePakistan steel recognize the staff welfare and gives it due importance aswell. It has arranged the residence for its employees and introducing thenew scheme for their welfare.

IUniversity Of Karachi 5


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The engineering goods industry is recognized world over as most criticalfor the development of a self reliant and vibrant economy. This industry,however, depends heavily on basic metals, especially Iron & Steel as resourceinputs. The Iron & Steel industry, therefore holds the key for sustained growth ofthe engineering sector and hence for development of the economy as a whole.

As such the steel industry can be termed as Mother industry to all modernindustries, being the basic source of metal for them. In this, prospective theimportance of national assets such as Pakistan Steel which is determined ontheir strength and ability to sustain the national growth rate, need not toemphasized. Abundant steel sufficient power adequate transports are otherwiseindustrialization of developing countries today.

The construction of Pakistan steel was started from 1973 and completedat a cost of 24700million rupees. Pakistan Steel today is the biggest industrialundertaking having production of 1.1 million tons of steel. The management ofPakistan steel has taken serious decision to restructuring of Pakistan steel mills

for increasing their savings. To serve they announced V.R.F to their employees.They do this because they want to reduce the strength of employees who arenow at the end of their fobs. Pakistan now and all the time is the industry thatcan provide millions of rupees per month but by good way. So through new waythey not only reduced production cost but also can increase the savings.

Located some 40 kilometers to the East of Karachi, Pakistan Steel and itsrelated facilities are spread over an area of 18,600 acres, or about 29squaremiles. The construction of complex involved the use of 1.29 cubic meters ofconcrete, 330,000 tonnes of machinery, stee structure and electrical equipment,and the employment of over 40,000 workers at the peak of construction.

In January 1971 the government of Pakistan and USSR signed anagreement, the latter undertaking to provide technological and financialassistance for the construction of a coastal based integrated steel complex. Thetotal capital cost ot project is estimated at about Rs. 1407 billion.

Designed to yield an annual production capacity of 1.1 million tones ofsteel, the Pakistan steel which was the outcome of collaboration between formerUSSR, and Pakistan signed a historic agreement under the terms of which theformer agreed to provide techno financial assistance for the construction of acoastal based integrated steel complex.

It took some time for a follow-up action after the signing of the agreementthat did not come up till 1976. but once the spade work had taken shape, theauxiliary work was completed in record time.

The first coke oven battery was commissioned in April, 1981, the Billet Millin October, 1982,, the tow converters, one bloom caster and two slab casters ofsteel making plant between December, 1982 and November 1983 the hot strip



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mill in December 83, the second blast furnace in August 84, the cold rolling mill inDecember 84, and the Galvanizing unit in August85 another unit, Billet casterwas added in November 1989.

For a person of modest qualification in earth science, computer,

electronics and metallurgy it is not easy to understand the complex nature of thefunction of the Pakistan steel. One has to be an in-person, totally absorbed withthe process of the mill to understand the complexities of the job. And for somevalid reason, in more than one ways, the Pakistan Steel is a next centuryventure that is being constantly modernized to keep steps ahead of its time.

Some of the main products of Pakistan steel are coke(215000 tones peryear) cast billets (135000tonnes per year) rolled billets (260000 tones per year)pig iron (135000 tons) hot rolled sheets/coils (445,000 tones per year) cold rolledsheets (90000tonnes per year) galvanized sheets/coil (100,000tonnes per year)and formed section (120000tonnes per year).

Since Pakistan steel is based on imported raw materials, a special jettyhas been commissioned by the port Muhammad Bin Qasim Authority forPakistan steel. All imported raw material, viz. iron ore, coking coal andmanganese, is transported to the main plant 4.3 kilometers away through aconveyor belt. The same job if done through conventional methods would havetaken hundreds of trucks and many thousands of man-hours. For unloading ofthe4 raw material from ships, two unloaders of 1000 tones an hour capacity eachhas been installed at the jetty by Pakistan Steel.

The multi-billion rupee Pakistan steel has opened a new vista ofopportunities for a long line of dealers, sub dealers and agents who operate asoutlets of Pakistan steel throughout the country.

A number of the products of Pakistan Steel have sprung up in its vicinityand in many parts of the country.

Abundant steel, sufficient power and adequate transport are absolutenecessities for rapid industrialization of developing countries. If one desires tofind out what Pakistan steel or for that matter Tarbela Dam, has done for country,one will have to venture back into time, into the early 70s when Pakistan steelwas only a sketch on the drawing board.

It took Pakistan steel just a couple of year to overcome the teethingproblems. Its recently improved qualitative performance is now a matter seriousdiscussion beyond Pakistan. The quality durability and fineness of its wide rangeof products has been acknowledged in the region, so much so that theproduction of the mill has been soaring at a rapid rate, achieving 100% levelsuccessively in March, April and May, 1996.



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HAfter independence in 1947, it did not take long for Pakistan to 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 alongwith an extortionately high import bill which would be impossible to support.

The initial idea for a domestic iron and steel mill was put forward in thefirst five year plan of Pakistan (1955 - 1960). Debates over the manufacturing

process, supply sources of the requisite machinery and raw materials, plant site,domestic ore versus imported ore, ownership pattern, product mix and above allforeign financing credit kept the project on hold for a considerable time.

In 1968 besides other factors, it was considered by the Government ofPakistan that a basic steel industry should be established in the public sector, aspublic sponsorship of the project would enable integrated development of thesteel industry in the country. In light of this, the government decided that theKarachi Steel Project should be sponsored in the public sector for which aseparate Corporation under the Companies Act be formed. As a result on the2nd of July, 1968 Pakistan Steel Mills Corporation was setup as a private limited

company in the public sector in accordance to the Companies Act of 1913, withthe objective to establish and run steel mills at Karachi and other places inPakistan.

In January, 1969, Pakistan Steel concluded an agreement with V/OTiajproexport of the then USSR for the preparation of a feasibility report into theestablishment of a steel mill at Karachi. Subsequently in January, 1971 Pakistanand the USSR signed an agreement under which the latter agreed to providetechno-financial assistance for the construction of a coastal based integratedsteel mill at Karachi.

The foundation stone for this gigantic project was laid on the 30th ofDecember, 1973 by the then Prime Minister Mr. Zulfiqar Ali Bhutto. Themammoth construction and erection work of the integrated steel mill, neverexperienced before in the country, was carried out by a consortium of Pakistaniconstruction companies under the supervision of Soviet experts.



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................................................................Pakistan Steel did not only have to construct the main production units but

a host of infrastructure facilities involving unprecedented volumes of work andexpertise. Component units of the steel mill numbering over twenty and each abig enough factory in its own right were commissioned as they were completedbetween April, 1981 to August, 1985 with the Coke Ovens and By Products Plantcoming online first and the Galvanizing Unit last. Commissioning of BlastFurnace Number 1 on the 14th of August, 1981 marked Pakistan's entry into theelite club of iron and steel producing nations. The project was completed at acapital cost of Rs. 24,700 million. The completion of the steel mill was formallylaunched by General Zia-Ul-Haq the then President of Pakistan on the 15th of

January 1985.

Today Pakistan Steel is the country's largest industrial undertaking havinga production capacity of 1.1 million tones of steel. The enormous dimensions ofthe project can be visualized from the construction inputs which involved the useof 1.29 million cubic meters of concrete, 5.70 million cubic meters of earth work(second to Tarbela Dam), 330,000 tones of machinery, steel structures andelectrical equipment. Its unloading and conveyor system at Port Qasim is thethird largest in the world and its industrial water reservoir with a capacity of 110million gallons per day is the largest in Asia. A 2.5km long sea water channelconnects the sea water circulation system to the plant site with a consumption of

216 million gallons of sea water per day.

Pakistan Steel did not only have to construct the main production unitsbut a host of infrastructure facilities involving unprecedented volumes of workand expertise. Component units of the steel mill numbering over twenty andeach a gig enough factory in its own right were commissioned as they werecompleted between 1981 to 1985 with coke oven and By product plant comingon stream the first and the Galvanizing unit the last. Commissioning of blast



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furnace No. 1 on 14 august 1981 marked Pakistans entry into the elite club ofiron and steel producing nations. The project was completed at a capital cost ofRs. 24700 million. The completion of the Steel Mills was formally launched bythe president of Pakistan on 15 January 1985. Pakistan Steel today is thecountrys largest industrial under-taking having production capacity of 1.1 million

tones of steel.

The above figures illustrate the massive civil works, intricate erections,installations of sophisticated electrical and mechanical equipment. With thecompletion of Pakistan Steel, the local contractors gained the technical ability tillthen unknown, which they utilized later to undertake million dollar projects bothwithin the country and abroad especially the Middle East.



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To become a leading steel company in south Asia committed to serving stakeholders by offering quality products through an innovative and cost effectivemanner in accordance to environmentally friendly conditions.

Pakistan Steel is committed to be a leadering steel industry by:

1 Greater response to customer's present & future needs.

2 Focus on productivity and Quality.

3 Facing Challenges of free Market Economy.

4 Ensuring higher rate of return on invested capital.

5Developing Human resource and motivating employees.through .empowerment and hard consequences.

6 Safe Working and Environment friendly conditions.

7 Minimizing process wastages, rejections and recycling .wastes.

8 Good Governance.

9 Fulfilling Social Obligations.

10 Improving Corporate Image.



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1. Development of corporate culture and good governance characterized by

participation, consensus, orientation, accountable accountancy,

responsiveness, effectiveness, and efficient observance of rules of law.

2. Keeping a constant eye on bottom lone to maximize profit and race.

3. Acquiring and employing technology through research and development for

increasing productivity and quality to reach DPR levels in 3 to 5 years.

4. Aiming at TQM system by 2010 by making quality.

5. Ensuring cost competitiveness by offering 1% annual investment I yield

wherever required.

6. 10% annual reduction of inventory till achieving level of 4-6 weak productions.

7. ISO certification by December 2002.

8. Orientation and commitment of employees to the mission by 2002.

9. Promoting indignation by facilitating use of 5% raw material by 2003.

10.10% increase in recycling of wastes by 2003.

11.Eliminate goods in transit by following better procurement policies by 2003.

12.Attaining designed values of consumptions of utilities by December 2003.

13.Introduction of next level of automation by 2005.

14.Diversification of product mix through BMR by 2006.

15.Phase wise expansion up to 3.0 million tones of raw steel by 2012

OCATION ND ITE

PAKISTAN STEEL is located at a distance of 40km South East of Karachiat Bin Qasim in close vicinity of Port Muhammad Bin Qasim. It was found to bean ecologically preferable location, alongside a tidal creek and having winddirection away from the city of Karachi. PAKISTAN STEEL is spread over an



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area of 18,660 acres (about 29 squares miles) including 10,390 acres for themain plant, 8070 acres for township and 200 acres for 110 MG water reservoir.In addition it has leasehold rights over an area of 7520 acres for the quarries oflimestone and dolomite in Makli and Jhimpir areas of district Thatta.

PAKISTAN STEEL provides employment to more than 14,500 person on regular

basis whereas about 3000 daily wage workers and retainers are engaged on

piece job basis including capital repair and emergency works etc, at different

complex of PAKISTAN STEEL. During the construction phase about 40,000

persons were engaged. With the establishment of down stream project about

25,000 persons were provided job opportunities while an equal number of

persons obtained employment indirectly.



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We at Pak Steel, strictly adhere to the ASTM and BSI international

standards. For this purpose we have established most modern laboratories to

maintain the highest quality precision standard. The perfection of our work has

captured the sharp eyes of discerning clients, in the public and private sector

including some of the top multinational construction firms. To produce high

quality steel according to the requires specification, Pak Steel is equipped with

both chemical and physical laboratories at our site in Islamabad. Prime Quality

M.S billets are processed through semi-automatic re-rolling plants, which are

designed to manufacture standardized products of exact and international

specifications; special attention is paid to the custom requirements instruction of

each particular client. Various holding concerns of this group, led by M.S Pak

Steel Re-Rolling Mills are prominently known for quality and dependable

manufacturer of steel products like: Mild Steel Round Plain Bars, Deformed

Bars, Square bars, and High Tensile Cold Twisted Bars, Angles, T-Iron,

Channel, Flat and other sections. Beside these we have potential to meet special

requirements of our customers.

The melting plant used for casting & ingot manufacture, is a high

frequency, totally computerized electric furnace, manufactured by world re-

owned Inductotherm U.S.A. However, our main source remains prime qualitybillets manufactured by Pakistan Steel Mills Corporation, Karachi and Heavy

Mechanical Complex, Texila.

Pak Steel is the first steel industry in the region to operate Cooling Beds in its

factory, thus ensuring precision and quality in the finished product. This

enhanced technological feature guarantees the optimum straight, shaft like finish

of our products. Similar unique innovations & automation in the manufacturing



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process enable us a present production capacity of 45,000 MT per year. Adding

additional shifts may increase thin.



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Administration And Personnel

Industrial Relations Department

Law Department

Numbers of Main Products List of By Products

1. Pig Iron. 1. Oxygen

2. Billets products. 2. Tar Cool

3. Galvanized products. 3. Granulated Slag

4. Hot rolled products. 4. Boulder Slag

5. Cold rolled products 5. Refractory Bricks

6. Coke 6. AMMONIUM SULPHATE

7. Formed Section 7. Nitrogen

ADMINISTRATIONANDPERSONNEL

DEPARTMENTAdministration and personnel department is responsible for overall

administrative and personnel matters in accordance with the policies, rules



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and regulations including welfare of employees. The following are the

various section of A & P Department.

This section deals with maintenance of personal files of all officers

from deputy Manager to general managers grade including the personal

files of the officers of those departments who have not been delegated the

administrative powers, issuance of NOCs / Leave enhancement /

Coverage of insurance claims, etc.

This section deals with maintenance of personal files of employees

in workers from pay group-I to pay group-V and of those departments who

are not having admin. Powers. All others functions are same like the

section A.

This section deals with maintenance of leave records of all the

officers and issues leave advices of the officers from the level of

managers to deputy general managers grade including of those

departments who have not been given authority. Also deals the files of

employees posted in A&P department and coordinates with FIA with

regard to different corruption cases under investigation and to computerize

the data statements in this connection.

Policy and Coordination section is the main part of A&P department

where policies and rules and regulations of officers & workers including

DPC promotion list are maintained. All management policies are

implemented in Pakistan steel through this section. It also deals with top

management cases as well as routine matters.



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This section deals with issuance of sanctioned strength of the

departments complexes and maintains up to date organizational charts,

transfer, posting of employees according to the manpower requirements.

Grant of house building, house purchase conveyance loans. This section

also deals with outside agencies like national assembly questions senate

questions correspondence with ministry president of Pakistan.

This section is the custodian of the ACRs of the officers with

declaration of assets submitted by them during the year. Also

communicates the adverse remarks endorsed by the reporting officers to

the concerned employees.

Enquiry cell deals with initiating necessary disciplinary actions

against the officers involved in misconduct corruption cases, carrying out

investigation and examination of enquiry reports of the completion of

disciplinary cases as per Pakistan steel officers service rules and

regulations.

This cell is established to facilitate the ex-employees as well as

dependents of deceased employees for settlement of their final dues

through accounts departments / provident fund gratuity fund.

This section deals with extending EOBI coverage to our entitled ex-

employees and payments of monthly EOBI contribution to concerned

authorities.



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Reporting center arranges all types of printing for Pakistan steel. It

also arranges printing of Al-Hadeed Khabarnama as and when required.

Administration and Personnel department commits to:

Manage and care the employees for better productivity, organizationalgrowth.

Appropriate staffing according to work requirements.

Maintain quality of work life.

Strive for corporate culture improvement.

INDUSTRIALRELATIONDEPARTMENTThe general function of industrial relations department is to create

healthy and harmonious relationship between the management andemployees to maintain industrial peace. I.R department is basically



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Welfare department, which has been administratively divided into six

sections. Each section is performing its functions very well.

Its specific function is to deal with the trade union and associationsworking in Pakistan Steel. This section conducts union referendums andnegotiates with CBA on CBA charter of demand. There are 12 registeredtrade unions and 03 officers associations functioning in Pakistan Steel.Now a days PPP Pakistan peoples partys recommended party PEOPLESWORKER UNION in power. After 12 years a referendum held in Pakistansteel in which PWU gets 4700 votes out of 5100. According to law if aparty not get one third votes in referendum it will be freeze so all otherparties are freeze now days and only one party is in working and that party

win the hearts of workers a charter approved by Pak steel is only forworkers welfare after the approval of that charter even some officers aregetting less or equal salaries than workers.

This section deals with group insurance, workers compensationand workers welfare loan cases. During last 06 months 15 deaths 10accidents and 1773 loans and hire purchase from Pak steel were dealswith. Further Rs 70000 is given to worker on the wedding of his daughterfrom Pak steel which is allowed twice in his service. More Pakistan steel

offer the scholarships for the sons of workers which isClass AmountIntermediate 12000/yearGraduation 18000/yearPost Graduate 24000 /year 02 Uniform, two pars of Shoes a set of books and school bag is alsoprovided by Pakistan Steel.

A sewing machine is also gifted to worker once in his experience.

This section has 05 Subsections

It is obligatory to provide canteens facility to the employeesat their working places. The employees are provided food onsubsidized rate which is one sixth Pakistan Steel has established19 canteens at different complexes keeping in view requirement of



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the employees and Rs 1300 laces are recommended annually forthis purpose.

Rs 60000 are given to workers as a loan only on the basis of

his identity card of Pakistan steel which is deducted from theirsalaries in 60 equal installments without any interest.

House appliances are also offered to employees oninstallments basis. Pak steel sign contracts with different dealersand shopkeepers to provide the facility of hire purchase to workersat minimum interest rate. For example 0% interest for 06monts04% 12months 08% more than 12months.

A public library under IR has been established in steel townfor the employees residing in steel town and Gulshan e Hadeed.There are 3000 books in that library.

Workers camp is consists of 31 barracks and each barrack isconsists of 4 rooms. Total accommodation is 700 beds.

This section deals with overall administration of IR.Department. Imprested account is also dealt with this section.

It is functioning under Chairman Communication. The employeescontribution is in the form of mosque funds. Rs.100 by officers and Rs 50by the workers every month. All religious affairs are dealt with mosque



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committee. It is consists of 04 members of CBA and 04 members ofadministration. It deals with the following matters.

Arrangements of religious functions

Repairs and maintenance of 30 mosques.

Annually procurement of mosques items.

Arrangements of Taravih, Eid prayers.



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1) Law Department institutes, conducts and defends legal proceedings by or

against PAKISTAN STEEL, or its officers or otherwise concerning theaffairs of PAKISTAN STEEL before Supreme Court of PAKISTAN, HighCourts, Federal Service Tribunal, Wafaqi Mohtasib, NationalIndustrial Relations Commission, Banking Courts, District Courts,

Arbitrators, Labour Courts, etc.All the court matters are dealt with by law department keeping in view thelimitation period which is specified in law in respect of various Courts/forums.Law department is dealing with 1179 cases ( as on 31-01-2006 to 31-08-2006) indifferent Courts and law Forums.

2) Law department maintains a Panel of Advocates for conducting the lawcases in various Courts/Forums.

3) Law department engages the services of reputed Legal Advisers for

seeking advice in complicated legal matters.

4) The cases filed against PAKISTAN STEEL before Wafaqi Mohtasib arecontested by law department.

5) The representations against the orders of Wafaqi Mohtasib (not in favor ofPakistan Steel) are prepared and field before the PRESIDENT OFPAKISTAN by Law Department. The representations fields before thePresident of Pakistan against PAKISTAN STEEL are also contested byLaw Department.

6) Law department assists the management in interpretation andimplementation of terms and conditions agreed to in the settlement signedwith CBA.

7) Law department renders legal advice in disciplinary cases and otherservice matters involving law points therein.

8) In civil, criminal, commercial, banking, land and corporate matters

involving complicated points of law, expert legal advice is obtained fromlegal advisors.

9) Law department vets Enquiry Reports/proceedings pertaining toemployees and renders advice in enquiry cases.



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10)The concerned officers of law department discuss and guide AdminOfficers, Enquiry Officers and prosecutors as and when required.

11)Law department vets indemnity Bonds/Surety Bonds pertaining to officersand workers.

12)In Court cases para-wise comments on petitions, appeals, plaints etc.received from the departments concerned are examined by lawdepartment.

13)Reply statements on behalf of Pakistan Steel, duly signed by incharge(Law), are filed in Courts/Tribunals.

14)Discussions are held in the premises of law department with the dealing

officers of the departments concerned in respect of courts cases andadvisory matters.

15)The representatives of law department attend various courts/Forums,depending on the requirement of the case, for providing necessaryassistance to the dealing Advocates during hearing of the case.

16)The concerned officers of law department attend Supreme Court, HighCourt, Court of Civil Judge, Senior Civil Judge, Additional District Judgeand district Judge, NIRC and labour Court and submit report about

progress of cases to incharge (law).

17)The representatives of law department attend meetings with the dealingAdvocates for pursuing Court cases as well as for filing of suits.

18)Law department handles Arbitration proceedings, in this connection therepresentatives of law department attend Arbitration proceedings forproviding necessary assistance to the dealing Advocates and dealingofficers of the concerned department during hearing of the case.

19)In the process of vetting indemnity bonds, surety bonds, enquiry reports,etc. the matters is discussed with the concerned officers of dealingdepartment, as and when it is deemed necessary, and necessaryguidance provided.

20)Law department examines and renders advice in different matters ofhadeed welfare trust.



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21)Law department arranges meeting of legal advisers with Management onvarious urgent and important matters.

22)Law department provides information/document to Government.



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12.The planets 2 kilometers long fly over which connect the steel mills thelargest when built.

13.Pakistan steel is provided with modern techniques such as dry-quenching of coke, oxygen enrichment of the plants high top pressureand high blast temperature in the blast finance.

14.Apart from the various facilities, utilities and services like water system,steam system gas services , compressed air services, lubricants andfuel oil services, weigh bridge, roads internal railway system andtraining services are also provided to Pakistan steel.

1. Under the previous sale policy the Pakistan steel had been a paradise for theplunders and looters. The steel dealers enjoyed monopoly in lifting theproducts at their own terms and condition. Misuse of power of Chairmanregarding quota, and parchi system had given birth to large number of fake,dishonest and bogus dealers.

2. The major weakness of Pakistan steel is the more administration cost due tothe overstaffing and large number of experience employees. The Russianswho gave the plant had proposed that PS would require 15000 regularworkers during the operational stage. By end 1981 when one coke-oven

battery and blast furnace had barely gone into production, the manpower hadtouched the level of 24,000 regular employees. It is surprise to know that inPakistan steel the number of officers is more than the number of worker.

3. The demand of Pakistan steels products is ever-increasing but due to itslower capacity of production which 1.1 million ton per year Pakistan steel isfail to fulfill the demand for its products the total demand of steels products inPakistan is about 4.5 million ton per year and the capacity of Pakistan steel isonly 1.1mtpy.

4. The Non-Development charges of Pakistan steel were touching as high asRs. 1.2 billion per year. It will be interesting to not e that such high amountwas spent to produce only 14% of capacity.

5. A large number of vehicles were being misused by unauthorized worker andofficers.

6. The standard of the foods in the canteen of workers is not better that resultedin de-motivation of Pakistan steels employees. The main reason is that thecontractors of these canteens misuse the subsidies given by topmanagement.

7. Pakistan steel has no efficient research and development department whichis key to product innovation and process innovation.



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8. Due to no repair and maintenance of equipment and machinery for last manyyears, there is always danger for the losses of precious lives of employees,which resulted in dissatisfaction in the labor force even in engineers.

9. Capital repair has not been made from last many years, which affect thequality of products and speed of production.

10.Due to no proper maintenance and capital repair of plant, the rate of rejectionis increasing.11.Pakistan steel has highly centralized system of decision making, due to this

delay in work does occur. Lengthy procedure and too much documentsresulted in delays of many urgent in many urgent policies to implement.

12.PAKISTAN STEEL has stopped the recruitment process for last many yearsthat resulted in no availability of fresh blood. Most of the employees are onthe age of retirement and having qualification of graduation level.

13.The focus of Pakistan steel is on cost accounting rather than cost control.14.Too many departments of Pakistan steel contributing very less profit to

Pakistan Steel, as compare to the cost.

During the course of my internship, I found that Pakistan steel was

set up with on objective to achieve a self reliant and vibrant economy. Up to

some extent it has been successfully in achieving this goal. It has highly



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beneficial impact on Pakistans economy. It has been instrumental in creating

new hob opportunities, promoting advancement its technological know, how

enlargement of wide range and variety of production, opening of new vistas of

technical and economical and economic cooperation internationally and giving

the start of the research and development activities in the field of metallurgy

specifically and in other technological fields.

Pakistan steel has a potential to provide a sound base for

industrialization and can provide stimuli for setting up of down stream industries.

It can also play a significant role in up gradation of technology and acquisition of

new technologies. It is also contributing billions of rupees to govt. of Pakistan by

way duties and taxes, but unfortunately this biggest industrial unit is suffering

from various problems like lake of strategic direction, weak financial position, and

govt. positive attitude towards imports, due capital repair, lake of cost control,

corruption and inefficient use of resources. After overcoming of these problems, it

can make its operations more efficient and take the advantage of expansion

opportunity in order to exploit the future market for iron and steel.

1. Management must be pay attention to the capital repair of plant which

otherwise will prove costly for organization.



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2. Old conservative and costly employees should be replaced with young

intelligent, qualified and cheap generation.

3. The persons who are trained from abroad should not to allow taking

VRF at any time.

4. Pakistan steel should free from any political pressure.

5. Proper orientation should be given to the market and sales promotion

activities.

6. There are always need to improve working condition and safety

measures in the production unit.

7. Pakistan steel can increase its profitability and efficiency by promoting

its down stream industries.

p r e f a c e steel mill complete report updte

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