Your editorial, "the rapidly rising steel prices," is most timely. There is no point in blaming Pakistan Steel Mills for increasing their prices.
The Pakistan Steel Mills price increases would not have been as steep if it had increased its prices gradually, over the past six-month period.
The deceased Chairman of Pakistan Steel increased prices but very nominally, for reasons best known to him.
The new Chairman has now taken the correct step. However, this is not the end, as I foresee fresh price increases in time to come as cooking coal prices, iron ore prices and ocean freight have all gone up and are likely to increase further.
The need of the hour is for our Finance Minister to take cognisance of the ground realities, immediately, and reduce the import duty and sales tax on the import of all raw materials of the Pakistan Steel and also on all imported steel items forthwith, if the government is really interested in an economic recovery.
The success of EUROBONDS, offering an unbelievable and unrealistic 6.75% return, is no measure of gauging the economic well-being, Finance Minister Shaukat Aziz, as nobody in his right frame of mind would offer 6.75% at this point in time.
In my humble opinion, it would be very difficult to service this issue in time to come.
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