Pakistani media reported that Pakistan’s ministry of industries and production MOIP has proposed 10% to 15% regulatory duty on the import of steel products to protect the local steel industry.
As per report, MOIP has decided to provide some incentives to the government owned country''s largest steel producer and after detailed discussions, the ministry has decided to impose regulatory duty on the import of steel products.
The reports added that duty imposition on the import of steel products was suggested by Pakistan Steel Mills Corporation after the rising losses due to low sales in the domestic market and huge cuts in the steel prices in the world market and PSMC officials, at the recently held meeting of steel stakeholders in Islamabad, had demanded this duty.
Earlier, in another move the PSMC had made several attempts to maintain higher Import Trade Price for the import of steel products, including CRC, HRC and GP. The sources said Pakistan Steel is also not willing for the reduction in the ITP of secondary steel products as the PS believed that after the reduction in the ITP its sales would further decline causing more financials losses.
Therefore, PSMC has also approached FBR and has written a letter for high ITP on the secondary steel products. In this connection Mueen Aftab Sheikh, Chairman Pakistan Steel, met the chairman FBR in Karachi a few months back. As a result of PSMC efforts, the ITP of imported steel products stand at high level despite the massive reduction in the steel prices in the international market. It may be mentioned here that PSMC has suffered some Rs 13 billion losses during the first nine months (July-March) of the current fiscal year due to sales.