Ittefaq Group: The History of a Pakistani Steel Pioneer
The story of the Ittefaq Group is a narrative of industrial ambition, political intersection, and economic transition. Founded during the early years of Pakistan's development, the company began as a modest family venture that grew into a significant force within the nation's steel sector.
The Foundations of Unity
Established in 1939, the company started as a small foundry. It was founded by seven brothers, with Mian Barkat Ali and Muhammad Sharif providing the most significant contributions to its inception. The name "Ittefaq" translates to "Unity" in English, symbolizing the bond between the seven founding siblings.
Muhammad Sharif, who is the father of former Prime Minister Muhammad Nawaz Sharif, played a pivotal role in the early expansion. He initially established an iron-melting furnace in Lahore, rapidly scaling the business to meet the demands of the young Pakistani state.
[ไม่มีภาพประกอบ]Growth and Political Turbulence
By 1971, Ittefaq Foundry had established a notable presence in the Pakistani steel industry. However, the business faced a major disruption in 1972 when Prime Minister Zulfikar Ali Bhutto nationalized the steel industry, which included the Ittefaq family's steel division.
The tide turned in 1978 under General Mohammad Zia ul-Haq, who returned the business to the Ittefaq family after developing political ties with the Sharifs. This period marked the beginning of a strong intersection between the family's industrial interests and national politics.
The Rise of Nawaz Sharif
Following the return of the business, Nawaz Sharif entered the political arena. In 1983, General Zia ul-Haq appointed him as the finance minister in the Punjab provincial cabinet. His political trajectory accelerated after the 1988 general elections, when he formed and headed the provincial government in Punjab, eventually becoming the Prime Minister of Pakistan for the first time in November 1990.
Divestment and Acquisition
The industrial chapter of the Ittefaq Group concluded through a series of legal and financial transitions. In 2004, the steel division was acquired by the Al-Rehmat Group of Companies, based in Faisalabad. This sale was mandated by the Lahore High Court to settle loans that the steel division had accrued between 1982 and 1988.
While the initial acquisition was valued at Rs. 2.159 billion, the family of Mian Mehraj Din—one of the original seven brothers and founder of the Haseeb Waqas Group of Companies—contested the asset evaluation. Following this plea, the Ittefaq Foundry was ultimately sold to the Al-Rehmat Group for a final sum of Rs. 6 billion.
Key Facts
- Founded: 1939 by seven brothers.
- Meaning of Name: "Ittefaq" means Unity.
- Key Founders: Mian Barkat Ali and Muhammad Sharif.
- 1966 Valuation: Plant investment estimated at Rs. 15 million.
- Nationalization: Occurred in 1972 under Zulfikar Ali Bhutto.
- Final Sale: Sold to Al-Rehmat Group for Rs. 6 billion.
| Year | Event | Key Figure/Entity |
|---|---|---|
| 1939 | Founding of the small foundry | Seven Brothers |
| 1972 | Nationalization of steel industry | Zulfikar Ali Bhutto |
| 1978 | Return of business to family | Mohammad Zia ul-Haq |
| 1990 | Nawaz Sharif becomes Prime Minister | Nawaz Sharif |
| 2004 | Acquisition of steel division | Al-Rehmat Group |
Frequently Asked Questions
What does the name Ittefaq mean?
The word Ittefaq means "Unity" in English, representing the unity among the seven brothers who founded the company.
Who were the primary founders of the Ittefaq Group?
While seven brothers founded the company, the most significant contributions were made by Mian Barkat Ali and Muhammad Sharif.
Why was the Ittefaq Group steel division sold in 2004?
The sale was ordered by the Lahore High Court to repay loans that the steel division had taken between 1982 and 1988.
How much was the final sale price of Ittefaq Foundry?
After a plea regarding the evaluation of assets by the family of Mian Mehraj Din, the foundry was sold to the Al-Rehmat Group for Rs. 6 billion.
What was the political connection between the Ittefaq family and the government?
The family's business was returned to them by General Mohammad Zia ul-Haq in 1978, and Nawaz Sharif subsequently served as a provincial finance minister and later as the Prime Minister of Pakistan.