Senate body discusses steel price hike

Rates surge 100% as a quarter of industry suspends production

ISLAMABAD:

The Senate Standing Committee on Industries and Production has been informed that prices of steel had spiked over 100% in the last one year.

During its meeting held under the chairmanship of Senator Faisal Sabzwari on Tuesday, officials of the Ministry of Industries and Production said that steel rates had increased to Rs216,000 per ton. Steel manufacturers told the committee that the rates of scrap - the raw material for steel - had surged 103% and a tax of Rs44,000 per ton was applicable to its import.

Electricity and gas prices have gone up as well and 25% of the steel industry has suspended production, they said. The committee sought a report on the prices of steel and profits made by the manufacturers. Industries Secretary Jawwad Rafique Malik told the committee that the government of Balochistan had requested the Centre to grant the status of industry to the mining sector. The committee discussed the issue in detail.

The industries secretary stressed that import of large vehicles should be banned in Pakistan. Officials of Pakistan Steel Mills told the Senate body that dues and losses of the state-owned industrial giant had surged 67%. They added that the federal government extended a loan of Rs90 billion to the steel mill at 11% interest rate. The loan is being used to make payments and over 5,500 employees have received their dues.

Payment to the remaining workers will be made by July-August this year. They highlighted that Steel Corp had been formed for the privatisation of Pakistan Steel Mills and all assets of the mill were transferred to it.

The officials revealed that four companies had expressed interest in Steel Corp during the bidding round as 1,229 acres of land of the entity would be leased. A model industrial estate will be set up over 1,500 acres of land, they said.

Published in The Express Tribune, March 30^th, 2022.

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