Pakistan’s first Chinese steel mill commences production

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Xiaonian Wu, chairman of the Shanxi Jianbang group, briefs officials about the Pak China Steel’s operations. (AN photo)
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Iron ore extracted from mines in the Balochistan province is stocked at the site of the Pak China Steel company for processing. (AN photo)
Updated 15 December 2018
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Pakistan’s first Chinese steel mill commences production

  • Company worth $12mn was established in March
  • Coal-fired blast furnace is the pioneer facility in country’s private sector

KARACHI: With an aim to cater to the infrastructure needs of the China Pakistan Economic Corridor (CPEC), the country’s first Chinese steel mill commenced its operations in Karachi on Saturday.

The Pak China Steel (PCS) company, a joint venture between Pakistan and China’s Jiangbang Group,  was established in March this year with an investment of $12 million to cater to the demand for crude iron by local industries. “The installed capacity is 8,000 ton, per months of pig iron and liquid pig iron which would be further expanded,” Xiaonian Wu, Chairman of Shanxi Jianbang Group, said during the inaugural ceremony of the PCS company at Port Bin Qasim on Saturday.

The coal-fired blast furnace is the first facility in the private sector of the country which utilizes the indigenous iron ore extracted from the mines of Balochistan. “Raw materials such as iron ore and limestone is local while metallurgical coke is imported. The facility will be an incredible chapter in the industry of Pakistan,” Wu said.

“At present, the facility is producing 4,000 to 5,000 metric tons per month which would be gradually increased,” he added.

The facility is being run by officials from Pakistan who will be supported by technical experts from China. “PCS has provided employment opportunities to 200 locals while 60 Chinese nationals are providing technical support,” Wu said.

Currently, the demand for Pakistan’s crude iron is being met through imports and shipbreaking industry. “We are looking at supplying pig iron to countries with local material of high quality,” Mustafa Dawood, a local partner of PCS, said.

Last year, Pakistan imported base metal including iron and steel worth $4.78 billion to meet the domestic needs. “We want to completely substitute the import of iron ore with local production and utilization of iron products. This is the first collaboration of Pakistan and China in the steel sector,” Li Felix, Director of PCS said.  

In the next phase, the PCS management plans to export pig iron to China, Thailand, and a few other countries.

Wu said that the CPEC has the potential to become the real and potential game-changer in the region and beyond promoting quality and competitiveness worldwide. “We are expecting to meet the growing demand of steel coming from CPEC projects,” he added.

According to the State Bank of Pakistan, Pakistan produces around six million metric tons of steel per year. This includes raw products (iron ore and scrap), flat products (sheets and plates, used in the automotive sector); and long products (steel bars, wire rods, and rails and structures used in infrastructure development and tubes and pipes).

However, the per capita steel consumption in Pakistan is very low at 23.5 kilograms, against 58.6 kilograms in India, as well as the Asian average of 261.3 kilograms and the global average of 216.9 kilograms.


Pakistani migrant’s death in UAE shatters economic future of families back home

Updated 11 sec ago
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Pakistani migrant’s death in UAE shatters economic future of families back home

  • Pakistani driver killed by falling debris during missile interception in Abu Dhabi amid escalating Middle East conflict
  • Death leaves more than a dozen dependents in Pakistan without income after eight years of overseas work

ISLAMABAD: For days, Nazar Ali told his daughter-in-law a gentle lie: authorities in the United Arab Emirates (UAE) had confiscated all mobile phones and her husband, Mureeb Zaman, would call home as soon as he got it back.

In reality, Zaman, a 40-year-old Pakistani driver who had spent eight years working in the UAE to lift his family out of poverty, had already been killed by missile fragments during an aerial interception over Abu Dhabi amid an escalating conflict in the Middle East.

The conflict began on Feb. 28 after the United States and Israel launched strikes on Iran following weeks of escalating tensions between Tehran and its regional adversaries. The attacks triggered retaliatory drone and missile strikes by Iran targeting commercial and US-linked interests across the Gulf region, prompting air defense systems in several countries to intercept projectiles in the skies above major cities.

As interceptors met incoming missiles over the Emirati capital that night, falling debris struck Zaman, ending years of work he hoped would secure a better future for his five children in one of Pakistan’s most volatile regions.

“I found out the same day because nowadays it is the age of the Internet,” Ali, Zaman’s father, told Arab News during a condolence gathering at his residence last week.

“I myself was in the market at that time when I received the news [of his death], but I did not tell the family.”

Zaman had been supporting three households in his hometown in Pakistan’s northwestern Bannu district, including the family of his late younger brother. The region, located in the province of Khyber Pakhtunkhwa near the Afghan border, has witnessed a surge in militancy and counterinsurgency operations in recent years.

The 40-year-old was one of millions of Pakistani migrant workers in Gulf countries whose remittances are a vital source of foreign exchange for Pakistan’s fragile economy.

He is also among the first reported Pakistani casualties of the recent escalation. Two Pakistani nationals have been killed so far in aerial interceptions in the UAE, while another Pakistani died last week in a similar incident in Iranian waters off Pakistan’s southwestern Balochistan province, according to authorities.

Zaman’s life abroad was measured in long-distance phone calls and carefully saved earnings, while his wife, four daughters and one son lived in a single room at their family home in Bannu.

“He used to say that ‘When I come on Eid, God willing, I will build a room for you’,” Ali, his grieving father, said.

For Zaman, working in the UAE represented an escape from the insecurity and economic hardship that have long plagued his hometown, where militant attacks targeting security forces and civilians have periodically disrupted daily life.

Family members said he had hoped to return home for the upcoming Eid Al-Fitr holiday, encouraged by military operations against militant groups in Khyber Pakhtunkhwa that had raised hopes of greater stability in the region.

Adnan Gul, Zaman’s nephew, remembered his uncle as a warm and optimistic man who often spoke about building a better future for his family.

“His wish was to have a good home, a settled family, and a good, peaceful life,” Gul said.

Recalling Zaman as a cheerful man who loved food and rarely lost his temper, Gul added: “With younger people he behaved like one of them, and with elders he behaved like an elder.”

“He had many wishes, but unfortunately all those wishes remained unfulfilled.”

Now, Zaman’s death has left his extended family facing an uncertain future.

Relatives fear the loss of his income could disrupt the education of his children, who attend school while also memorizing the Holy Qur’an.

“He used to say these things and tell me ‘Not to tire yourself too much because you have already done a lot of hard work’,” Ali, his father, said, his voice trailing off.

“But such a day came that Allah Almighty once again left us [helpless], and we don’t know what will happen next.”

Buried in his hometown, Zaman is remembered through the photographs he shared with family members on WhatsApp and the Eid gifts he had already purchased before his death.

“When a person leaves this world, only memories remain,” Gul said.