In order to stop price hike in steel products and address the concerns of the consumers, the federal government has allowed import of re-rollable scrap with immediate effect.
A formal decision to this effect was taken here on Tuesday at a high-level meeting with Industries and Production Minister Liaquat Jatoi in the chair.
The meeting reviewed the recent steel crisis and its price hike and decided, in principle, to stop irrational increase in the prices of steel and its products.
Those who attended the meeting included Industries and Production Secretary Javed Ashraf Hussain, Pakistan Steel Mills chairman, senior officials of the Central Board of Revenue (CBR), Finance Ministry and other related departments.
The meeting was given a detailed presentation on the billet bloom prices covering local and international market. Jatoi took serious note of consumers concerns.
The minister asked the Pakistan Steel Mills chairman to personally look into the issue and take all possible steps to rationalise steel prices in the open market. He asked him to take immediate steps to import billets to meet the demand of the Pakistan Steel Mills.
Meanwhile, the CBR has been directed to consider appropriate reduction in duty structure for a particular period to stabilise the prices in the domestic market.
The meeting also directed the concerned department to ensure strict vigilance and take action against hoarders and profiteers.
It directed the law-enforcement agencies to conduct raids against hoarders/profiteers. The provincial governments have been advised to be vigilant to ensure prices of steel at an appropriate level and take strict action against profiteers.
The meeting was informed that billet/bloom prices were on the rise in the international market.
Steel and its products prices had gone up irrationally during the last few weeks owing to upward revision in billets/blooms prices by the Pakistan Steel Mills in context of their rising prices in the international prices.
Steel, which was available at Rs 25,000 per tonne is now ranging between Rs 55,000 and Rs 60,000 per tonne, just within a gap of two weeks.
This has left many industries and sectors in total disarray. The increase was so abrupt and irrational that none of the related sectors could absorb the upward revision.