Business

Govt to start work on steel policy in September

Will introduce framework for long-term financing

Our Correspondent August 17, 2021

Rise in steel rebar prices comes because of persistent disruption in global market, rupee depreciation. PHOTO: REUTERS

ISLAMABAD:

The government plans to introduce framework for the steel policy, aimed at 10-15-year long-term financing and incentives for the steel industry.

The government will start working on the framework for the policy in September 2021. The steel industry has also proposed the government to introduce tax credit for provision of steel bars for the prime minister’s low-cost housing scheme to benefit local market and improve overall affordability of houses.

A delegation of the Pakistan Association of Large Steel Producers (PALSP) called on Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar on Monday.

The meeting was also attended by Commerce Adviser Razak Dawood and senior officers of the Ministry of Industries and Production.

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 scrap, steel bars and mechanism to lower the cost of steel products. They also discussed their concerns on incentives for the steel industry located in FATA/PATA areas. The PALSP members suggested introducing tax credit for provision of steel bars for the PM housing scheme and highlighted the possibility of increase in export demand of steel related products in the region due to high quality manufacturing of steel bars.

The minister indicated that the government is working on a comprehensive long-term roadmap for the local steel industry, which could help meet the growing domestic demand. He said that structural reforms were imperative to make Pakistan’s steel sector globally competitive. He also highlighted that mining and utilisation of local iron ore would be incorporated into the policy framework in line with vision of Prime Minister Imran Khan.

He elaborated that this package would reduce import bill and generate employment opportunities for local people. The adviser assured that the government would start working on the framework of steel policy in September 2021.

Published in The Express Tribune, August 17^th, 2021.

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