Welcoming the latest policy, leading steel melters and re-rollers yesterday defended the imposition of 15% Regulatory Duty (RD) on steel imports, citing that the heavy imports were adversely affecting the local industry.
The government’s decision has come as a response to lengthy lobbying on part of the steel industry, which was trying to secure its survival in the face of international competition. Steel melters, ship breakers and large scale re-rollers – that represent over 85% of the sector’s production capacity – approached the Federal Board of Revenue (FBR), and relevant ministries on the rising difference between locally manufactured and imported products that had swelled to Rs10,000-15,000 per ton.
As part of the policy the government is introducing a 15% regulatory duty on steel billets, bars and wire rods – a move that is meant to protect local industry. After the imposition of the regulatory duty, imported steel products are still Rs3,000-Rs5,000 cheaper than locally manufactured products, according to the industry experts.
The makers of different steel products, while speaking to a group of journalists on Wednesday, argued that the government has followed the example of several international economies that have already imposed various counter-veiling duties on imported steel products.
“We applaud the government’s ingenuity of providing an opportunity where importers can continue importing without having spillover effects on the local industry,” Pakistan Steel Manufacturers Association (PSMA) Vice Chairman Khalid Khan said.
PSMA representatives said the imported goods will continue to come in the country but they will just be more competitively priced now and will provide a level playing field.
The Pakistan Ship Breakers Association (PSBA) also welcomed the levy of 15% RD on the import of all steel billets, steel bars and wire rods.
