Steel Association Seeks Urgent Government Action to Resolve Industry Concerns

SEATTLE (Scrap Monster): The Pakistan Association of Large Steel Producers (PALSP) urged the Ministry of Industries and Production to address the issues faced by the country’s steel sector in the upcoming Finance Bill 2020-’21.

The PALSP noted that the government had substantially reduced duties on billet imports, in a decision considered favourable for wire rod manufacturers in the country. However, this could be potentially misused by re-rolling mills that does not even have wire rod manufacturing capabilities. The reduced duties and taxes are likely to hurt the domestic wire-rod manufacturers as well as the steel billet manufacturers. Furthermore, the increased imports are likely to hit the country’s foreign exchange reserves, it said.

RELATED NEWS:

LatAm Steel Output Hit by Near-Zero Market Demand

worldsteel SRO Hints at Remarkable Decline in Steel Demand

Also, PALSP has requested the government to allow 100% input adjustment for steel sector, which has been facing severe liquidity crunch on account of the crisis situation created by the Covid-19 pandemic.

Additionally, PALSP requested the concerned government ministries to ensure reduction in price difference among re-rollable material, ship plates and billets, which in turn could help billet manufacturers and billet re-rollers recover their financial losses. It also called for amendment of the Sales Tax Act so as to allow sales to unregistered parties, which is currently not allowed as per the Act provisions.