The Pakistan Steel Melters Association (PSMA) has welcomed the levy of 15 per cent regulatory duty on all steel billets, bars and wire rods by the government.
This decision has come at a time when the industry was in grave danger of being wiped out by imported steel products that come at a cheaper price because of Free Trade Agreement (FTA) concessions, subsidies offered by exporting countries by way of export rebates and energy subsidies and mis-declaration at port to dodge customs duty that are estimated to be in the range of 20 to 25 per cent of the product cost.
The cost difference between imported and locally manufactured billets, bars and wire rods had increased to an unprecedented level in the range of Rs 9,000 to 14,000 per tonne depending on the product.
“The government has acted swiftly and in the best interest of the nation by providing an environment of fair competition and level playing field that will foster further investment in the steel sector,” said a member of PSMA.
