CPEC: Chinese firms urged to buy local steel, not import it from China

President of Pakistan Businessmen and Intellectuals Forum (PBIF) Mian Zahid Hussain has said that the Chinese firms involved in the CPEC projects should prefer buying steel from the Pakistan's local market and avoid importing it from China because it will boost local industry alongside providing jobs and revenue. He also asked the government to resolve issues of iron and steel industry as it has gained importance due to the CPEC and increased construction activities in the country.
"Iron and steel industry remain small and fragmented in spite of surging demand due to the infrastructure development and private construction activity," he said. Mian Zahid said that all the sectors of this industry including Pakistani steel millers representing around 400 units want a clear policy, resolution of tax-related issues, and an action against the flood of under-invoiced products from other countries which is keeping investors away from this sector.
"Domestic steel consumption remains as low as 23 kilograms per capita compared to more than 58 kilograms in India, the Asian average of 261 kilograms and the global average of 217 kilograms, which indicate the potential for new investments," he cited. PBIF president said that the domestic steel production capacity was estimated to be around 6 million tonnes compared to the global capacity of 1.65 billion tonnes while the low quality of local production and outdated production processes were issues that must be resolved.
"The industry must invest in technology as local producers have not been able to take full advantage of the surge in demand as almost one-third of the domestic demand is met through imports," he said. Mian Zahid further said that demand for iron and steel would continue to increase but the local manufacturers would not be able to benefit from it or invest more unless the government gives a clear as well as long-term policy for protecting investments or take steps to make the industry competitive that include cutting the cost of doing business.