Mian Iqbal Hassan, Chairman, Engineering Sub Committee, of Multan Chamber of Commerce and Industry (MCCI) has stressed the need for increasing the steel production to meet the local requirement of 27 kg per capita while we are producing only 6.8 kg per capita. This situation is very concerning and required an immediate introduction of a steel policy.
In a press statement Mian Iqbal Hassan said that what a pity that we have to meet our steel requirement from import of scrape and finished steel products. There is a big gape in demand and production. Pakistan steel mill was operating under semi-government control and heavily protected by tariff at the cost of local consumers of steel.
They have been enjoying monopoly in the country and generating substantial profits. In the coming days our steel products will not be competitive in the international markets. Our engineering industry will be in serious problem in the area of added value products.
Since the steel mill has been disposed of to the private sector. It needs special attention on war footing in future. He said that the economic growth of any country mainly depends on production and consumption of steel. USA is the largest economy of the world and their consumption of steel has reached to 350 kgs; per capita per year.
China has become the largest producer and consumer of the world. Her last year production was 270 million tons. They have extended their production to 350 million tons this year. This increase has been achieved during the last one and a half-year. Their production is 29 percent of the world steel production. Their per capita consumption has reached to 270 kgs. They have substantial quantity of iron ore available in their country.
India has become the 8th largest country of the world having production of 33 million tons per year. They are planning to extend it to 80 million tons in next 10 years and will become the 5th largest producer of the world. Their per capita consumption is 33 kgs. Meettal of M/S Lakshami has recently announced a steel project of 12 million tons with an investment of 10.2 billion US dollars on their local iron ore.
Iran production of steel is 11 million tons and they have planes to extend their production to 38 million tons in next 10 year. M/s Tata steel of India is assisting them for putting new plants. They have large quantities of local iron ore. Their per capita consumption is 160 kgs. MCCI's sub committee chairman of engineering said that our surrounding countries have made their steel policies and working very effectively.
Pakistan Steel Mill production is 1.10 million tons per year based on imported iron ore. Our production of steel from imported iron ore is just 6.8 kgs against consumption of 27 kgs per capita. He warned that in the coming days our steel products will not be competitive in the international markets. Our engineering industry will be in serious problem in the area of added value products.
He said that it is worth mentioning that no steel industry like Pakistan Steel Mill on imported iron ore can generate net profits after taxation for Rs 6.7 billion and pay 8 billion taxes on sale of Rs 32 billion during the year 2004-2005.