July 25, 2023 (MLN): The Pakistan Association of Large Steel Producers (PALSP) has raised concerns over the large-scale smuggling of steel billets and bars from Iran and Afghanistan to Pakistan, which is causing huge revenue losses of Rs25 billion annually to the domestic steel sector and the national economy.
According to PALSP, around 500,000 metric tons of steel are smuggled into Pakistan every year, which amounts to 10% of the long steel production of the country.
This affects the export potential of the steel sector, which reached $1bn in FY2021-22.
PALSP warned that if smuggling continues unchecked, it will lead to de-industrialization, lay-offs, unemployment, no further investment, financial implications with respect to FATF, and social unrest in the country.
It said that allowing smuggling means creating unemployment in Pakistan and exporting jobs to other countries.
PALSP appealed to all the relevant authorities to take urgent measures to curb smuggling and save the steel industry from closure. It said that it is time to act before it is too late.
