Lahore December 26 2022: Steel rebar prices could surge to PKR 250,000 per ton due to non-opening of LCs for this vital sector warns Pakistan Association of Large Steel Producers.
In a request to Prime Minister and Finance Minister of Pakistan the association states, “The Steel Sector plays key role in running 45 down-stream industries associated with the construction industry of the country. Currently the steel industry is facing a very challenging situation. As a result, in recent past, many steel mills closed their operations and many have drastically cut their productions. Due to a host of factors, during the first 4 months of FY 2022-23 the import of raw material of steel sector/ scrap has been reduced by 40%.”
One of the factors which is creating serious crisis is non-opening of LCs for this vital sector. As a result, the steel sector is facing problems in importing the raw material.
As a result, there is likelihood of acute shortage of steel in the coming days which would hamper reconstruction & rehabilitation process in the recent flood-effected areas. At the same time, the prices of bars could soar to PKR 240 – 250 PMT or more.
This situation could also result in huge loss of the Govt revenue and at the same time it could badly affect the pace of work of housing as well as country’s strategic projects.
The situation has worsened to due to major cut in release of PSDP by Govt, and above all, due to highest ever interest rates, choking the life-line of the industry! If the situation remains unaddressed, it could result in large-scale joblessness of workers associated with the steel sector.
