Federal Minister for Industries and Production Makhdum Khusro Bakhtyar on Monday said that structural reforms were imperative to make Pakistan’s steel sector globally competitive.
The minister indicated that the government was working on a comprehensive long-term roadmap for the local steel industry which could help meet the growing domestic demand.
A delegation of the Pakistan Association of Large Steel Producers (PALSP) called on Federal Minister for Industries and Production Makhdum Khusro Bakhtyar, said a press release.
The meeting was also attended by the Minister of Commerce and Investment Razak Dawood and senior officers of the ministry of industries and production.
The minister also highlighted that mining and utilisation of local iron would be incorporated into the policy framework in line with the vision of Prime Minister Imran Khan.
He elaborated that this package would reduce import bills on raw material and generate employment opportunities for the local people. Khusro Bakhtyar said that the policy would focus on 10-15 year long term financing and incentives to the steel industry.
During the meeting, the PALSP delegation briefed the minister on installed capacity, total capacity, and production of steel units across the country.
The steel sector representatives also informed the chair on prices of scrape, steel bars and mechanism to lower the cost of the steel products and discussed their concerns on incentives to the steel industry located in FATA/PATA areas.
Members of PALSP suggested introducing a tax credit for provision of steel bars for the prime minister’s low-cost housing scheme to benefit the local market and overall affordability of houses.
The delegation also highlighted the possibility of increase in export demand of steel related products in the region due to high quality manufacturing of steel bars.
The adviser assured that the government would start working on the framework of steel policy in September 2021.
At the conclusion, the PALSP delegation thanked and appreciated the efforts of the minister and adviser for assuring support for growth, development and revival of the country’s steel sector.
They also called for mutual efforts to mitigate challenges faced by the steel industry.