As per media sources, it is heard that the annual demand in Pakistan for steel products will surge by over 30% to 6 MnT from 4 MnT, with launch of a series of mega development and power projects under China–Pakistan Economic Corridor (CPEC) project.
Mr. Akhtar Saeed, Vice Chairman of Pakistan Steel Re-Rolling Mills Association (PSRMA), said, “There are about 475 steel producing units, both including large and small, currently operating in the nation and their yearly production is about 4 MnT, out of which, the large steel units’ production share is around 1.2 MnT.”
He further added that more incentives are needed to attract new investments to steel industry. The Pakistan government should bring out new comprehensive and targeted policy and this could be better done through detailed consultation with PSRMA. The surge in demand will also support manufacturers to set-up new steel units, creating more employment opportunities and also help the government to acquire good amount of taxes.
The government should take every possible measure to promote local industries including steel and strengthen them enough to compete in the regional and international markets.
Mr. Saeed also said that investment shall come, only when investors’ safety and money are guaranteed by the government. However, he expressed his satisfaction over the banks’ support and facilitation towards the steel industry.
PSRMA’s Chairman emphasized that Board of Investment should make hectic efforts to bring maximum foreign investment as well, for setting up new steel units to fulfil the rising steel demand and for promoting other potential industries towards national economic prosperity.
Mr. Saeed also mentioned that certain tax related issues with Federal Board of Revenue need to be resolved immediately for the growth and sustainability of steel industry. Moreover, instead of importing steel products from China, the aim should be on import of raw material from there.
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