Wajid Bukhari, Secretary General of the Pakistan Association of Large Steel Producers (PALSP), has stated that the steel industry is facing several issues as a shortage of raw materials, rising international scrap prices, and continuous depreciation of the rupee. He requested the State Bank of Pakistan to resolve the issue of LCs to help the steel industry prevent it from collapsing.
The Secretary General of PALSP stated that 42 allied industries are at risk due to the problems faced by the steel industry. It is a source of employment for more than 200,000 people, and the overall jobs of 7.5 million people are associated with allied industries. A massive decline of 50% has been observed in steel production. Raw material prices are more than PKR 300,000/ton and possibly rise to PKR 330,000/ton. He said that available trade finance to the steel industry is insufficient, and the recent rupee depreciation has decreased the LCs limits by 30%.
Steel scrap imports had a massive decline by 50% over the last two decades in the 2nd quarter of FY2023 at 616,000 tons compared to 1,235,000 tons in FY2022. He requested the SBP to allow the industry a smooth process of import of raw materials, even limiting it due to the crunch of foreign reserves. The steel industry needs help on an urgent basis to avoid the closure of the industry.
Leave a Reply