ISLAMABAD: The Competition Commission of Pakistan (CCP) has released a comprehensive report highlighting severe challenges and irregularities within the nation’s critical steel industry, strongly recommending the establishment of a separate federal ministry for steel, similar to the models used in China and India.
The report, titled “Competition Assessment of Pakistan’s Steel Sector,” reveals that the absence of a cohesive National Steel Policy has left the entire industry vulnerable to chronic uncertainty and irregularities.
The assessment paints a grim picture of the sector’s current state. Pakistan Steel Mills, once a national asset with a 1.1 million-tonne annual production capacity, has been non-functional since 2015 and is burdened with liabilities exceeding 400 billion rupees.
Even more alarming is the finding that due to weak enforcement and regulatory failures, up to 50% of the steel available in the market is reportedly of substandard quality.
The report also identifies a massive drain on the national exchequer. Tax exemptions granted to the former FATA/PATA regions are allegedly being exploited, allowing an estimated 1.5 million tonnes of untaxed steel to re-enter the markets of settled areas. This loophole is causing an annual loss of approximately 40 billion rupees to the national treasury.
The CCP has recommended a complete overhaul, urging a review of the national steel policy to create a stable framework, the elimination of the ex-FATA/PATA tax exemptions, and the strict enforcement of quality standards to curb the sale of substandard steel.
