The recent decision taken by the government to impose 15 percent irrationally excessive regulatory duty on the billet being used in steel re-rolling industry has started to appear in the shape of devastating results.
Due to heavy duty, many companies have stopped importing billet which has led to the shutdown of a large number of steel re-rolling mills, thus shortage of billet in the market has badly affected the manufacturing of products being manufactured by billets and now thousand of projects future is at stake.
It is pertinent to highlight here that in Pakistan, there are only a few local companies who are manufacturing billet according to the prescribed PSQCA and international standards and they can only meet a small percentage of the total demand. The government has taken this step to protect a small number of firms who have formed monopoly in the country, the 15 percent regulatory duty on imported steel billet has caused an acute shortage of steel products in the market, whereas the survival of the industrial sector is heavily dependent on the availability of steel products. Pakistan Steel Re-rolling Industry has made an earnest appeal to government to withdraw the 15 percent regulatory duty on imported billet with immediate effect to insure sustainable development of industry and steady sate economy. Steel Re-Rolling Mills Association is also putting forth a request for an increase in national wealth to levy a duty on finished goods rather than on raw material.-PR
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