Steel industry seeks a ‘viable and clear’ tax policy

ISLAMABAD: Pakistan steel industry, Friday, urged the government to draft a viable and clear written policy for the steel industry, mentioning the rates of all the taxes, so that the industry could smoothly operate, as with current ‘discriminatory’ policies the sector is teetering on the edge.

The request was presented to the Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan by a delegation of the Pakistan Association of Large Steel Producers (PALSP), who called on him.

The SAPM assured the PALSP delegation that the government was committed to support steel industry and was taking seriously the current challenges faced by it, particularly concerns regarding tariffs.

Industry leaders warned that unless immediate corrective measures were taken, the sector will shut down, triggering widespread unemployment, devastating downstream industries, and eroding the investor confidence in Pakistan’s economic stability. The steel manufacturers are being forced to operate in an environment where injustice is at its peak. This is not a crisis just for the steel sector but for the entire economy, PALSP leaders said.

Khan emphasised that the government is actively taking steps to support the steel industry and acknowledged the concerns raised by the manufacturers about the impact of tariffs, but reassured them that the government’s efforts are directed towards facilitating the industry.

The large steel manufacturers expressed their urgent need for the government to address the ongoing discussions about reducing import tariffs on finished steel goods.

Khan clarified that the current decline in the industry is not due to regulatory duties or any other government-imposed obstacles, but rather a result of a decrease in demand. He emphasised that the government is committed to supporting the sector and addressing the challenges it faces. We are working under the prime minister’s vision to bring reforms in the tariff policy to rationalise tariffs and provide the necessary protection to the steel industry, said Haroon Akhtar Khan. “Our efforts to balance the tariffs are ongoing, and we are adhering to the prime minister’s instructions to ensure fair protection and support to the industry.”

Furthermore, Haroon Akhtar Khan assured the steel manufacturers that the government plans to phase down additional customs duties and adjust regulatory duties over time to provide relief.

“We are continuously refining our framework to ensure that the steel industry receives the best possible support from the government,” he added.

In these challenging times, SAPM reaffirmed the prime minister’s commitment to ensuring that the budget is balanced while providing relief to the people, including the steel industry.

Khan concluded the meeting by assuring the steel manufacturers that the government is actively working on solutions to resolve the industry’s issues and will continue to engage with them to address their concerns.