Steel sector seeks approval to begin operations

Official says construction industry cannot move forward without steel

KARACHI: Following the announcement of a special package for the construction sector by Prime Minister Imran Khan, the steel industry has requested the premier to allow it to resume operations as without steel the construction segment will be unable to move forward.

Pakistan Association of Large Steel Producers Secretary General Syed Wajid Bukhari praised the announcement, saying the stimulus would open job opportunities for the country’s workforce.

“Needless to say that steel is the backbone of the construction industry. We urge the government to immediately open the steel sector, especially all those mills that have labour colonies or residential arrangements for their workforce within the premises of their plants,” he added.

The official pointed out that many steel companies had arrangements for their employees within the plant vicinity and 70-80% of the industry could function through these employees in line with the safety measures necessary to combat Covid-19.

“In our well-considered view, unless the government allows the steel sector to start production, it will be impossible for the construction sector to take up its projects.”

Bukhari said any delay in opening up steel mills to start production could lead to delay in the entire initiative of the government to revive the construction sector, adding that the government had allowed the cement sector to continue its operations. The official lamented that the sector was already suffering and faced further downturn when the rupee depreciated.

“The rupee lost almost 40% of its value against the dollar in the last one year, and another blow came to the steel sector when the interest rate skyrocketed to one of its historic peaks.” He said withdrawal of the Special Procedural Rules 2007 for the steel sector in the previous budget also came as a blow, which doubled tax to around 17%.

Published in The Express Tribune, April 7^th, 2020.

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