In the early years after partition, Pakistan's industrial policy stressed the production of consumer goods. However, as early as 1955, people realized that the iron and steel industry was essential fro the economic development of the country. Even so, it was not until 1973 that the foundation stone of the first iron and steel plant was laid at Karachi, close to Port Qasim, with the technical and financial support of the USSR.
Pakistan Steel covers an area of 75.4 square kilometers, including 32.9 square kilometers of the steel Township. The raw materials required for this industry-iron ore, manganese and coking coal have to be imported. Pakistan Steel has two blast furnaces and has a capacity of 1.1 million tonnes. Although the plant produces billets, hot rolled sheets, cold rolled sheets, pig iron. Pakistan is still not self sufficient in iron and steel production and has to import heavily from other countries.
The Pakistan Machine Tools Factory was established at Karachi in 1968 in collaboration with a Swiss company. It has grown into a sophisticated engineering complex, which manufactures precision machines and tools for the engineering industry, transmission components and automobile parts.
In 1968, government gave permission for a heavy mechanical complex to be built at Taxila with Chines aid. It started production in 1970. The factory has a steel melting capacity of 60,000 tonnes and a production capacity for castings and forgings of up to 46,000 tonnes. It meets the needs of railways, automobiles and heavy machinery.
The Karachi Shipyard and Engineering Works was completed in 1956. It can build and repair ships of up to 12000 tonnes, A canal connects the shipyard with Karachi Harbor.