KARACHI: Pakistan Steel Melters Association (PSMA) has strongly rejected the recently issued SRO 47 (I) 2018, that allows controversial duty and tax exemptions to China State Construction Engineering Corporation Limited. This exemption of taxes and duty to Chinese company will cost the national exchequer approximately Rs 11 Billion. Under this controversial SRO, China State Construction Engineering Corporation Limited, which is working on the Sukkar to Multan Motorway section, has been allowed duty free import of construction materials and machinery in Pakistan. To record it reservations at the highest level, PSMA has drawn attention of the Prime Minister Shahid Khaqan Abbasi towards this issue through a letter requesting the PM to withdraw the disputed exemptions allowed to a foreign company on the expenses of local steel sector. In 2017, Pakistan Steel Melting Industry was coined as the fastest growing steel industry in the world, as per LSM (Large-Scale-Manufacturing) data published by SBP (State Bank of Pakistan) notes that Billet/Ingot production has grown by 62% 4MFY18 year-on year. Hussain Agha, Senior Vice Chairman PSMA, notes “the steel Industry of Pakistan is gearing up for a massive $300 million capacity expansion within the next 24 months, which would yield multifold growth in revenue collection to our national kitty. The Chinese are our brothers in progress and we warmly welcome CPEC, however, we must ensure that it is done on a fair and mutually benefitting basis.” Tremendous jobs are at stake if the government gives anti-localization incentives to special companies.
Published in Daily Times, February 8th 2018.
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