Iron and steel constitute a basic input for the industrial development of a country. For 1984-85 the per capita consumption of steel in Pakistan stood at 20 kgs. Whereas a world average of 160 kgs and an average of 55 kgs is for other Asian countries. The sixth five year plan has identified steel based engineering goods as one of the four major growth points for the expansion of the manufacturing sector. With the completion of Karachi Steel Mills, urgency is attached to investment in downstream industries. Within this sector linkages have been identified with the demand for equipment originating in various sectors-Transport equipment, railway wagons, rails, steel using industries, large dia pipes, electrical equipment, telecommunication instruments and machinery for downstream industries. The projected plan outlay of Rs.19.93 billion for the metal and engineering sector, a sum of Rs. 10.78 billion is envisaged for the private sector. To encourage private sector participation the plan, therefore, envisages extensive deregulation.