THE National Bank of Pakistan's approval of the financial package of Rs 10 billion to Pakistan Steel Mills for the import of the raw material indicates the severity of the financial crisis the organization is suffering from. True, the global financial crisis has also hit the steel industry everywhere hard and has had a negative impact on industry in Pakistan; yet the management of the PSM cannot escape the blame for the present state of affairs. What is more, reportedly in order to keep its monopoly, the mills' management has been demanding the government impose a regulatory duty on imported finished steel products, which the importers claims is unjustified. The performance of the PSM so far remains below average but it is not hard to trace the causes ailing the industry. The PSM was set up by the Zulfikar Bhutto government in collaboration with the USSR in order to provide steel at a subsidized rate to the local industry. This has had a negative impact on the balance sheet and goes against the logic of profitable ventures, like the PSM are supposed to be. Above all, the unit's priority should be to sustain itself.