KARACHI, July 2: Pakistan Steel (PS) will start exporting its products to various countries in the next three months after receiving some serious enquiries from various foreign buyers.
This was stated by chairman Pakistan Steel, Lt-Col Mohammad Afzal Khan in a meeting with members of the Karachi Chamber of Commerce and Industry (KCCI) on Tuesday.
“We expect to export around 100,000-150,000 tons of steel products in the next three months,” he told the gathering but could not identify the actual destination of exports.
However, chairman PS seemed unhappy over the 2002-03 budgetary measure of cutting import duty on steel products to 25 per cent from 30 per cent, saying the government’s
decision turned out to be an exceptional case as compared to other developed countries where import tariffs are either capped or enhanced to protect the local industry against cheap imports.
He said the United States has imposed a 30 per cent duty on steel products followed by 26 per cent by EU, 35 per cent each by Belgium, Mexico and Thailand, 50 per cent by Malaysia and 51.57 to 57 per cent by India.
Besides, giving tariff protection these countries have also given protection to their industry in terms of levying anti-dumping duties ranging between 30-85 per cent on various countries if they identify dumping of goods at cheaper rates.
He said in Pakistan there is no such countervailing duties and many countries are easily dumping their products at cheaper prices in Pakistan. “We have asked the government to impose anti-dumping duties of about 15-20 per cent on such countries,” he added.
“Pakistan should adopt the attitude of developed countries of imposing higher import duties on steel products in order to protect the local industry,”
Afzal Khan said adding that economic policies should be framed aimed at promoting the
country’s as well as industries’ interest.
At a time of moving towards free market economy — developed countries like United States are giving top priorities to protect their industries first and then touching the issues of open market theory, he said.
Pakistan Steel is also facing problems over the government’s decision of collecting three per cent additional sales tax from the non-registered tax payers. “We have requested the president, finance minister and CBR chief to take cognizance of the matter or remove this restriction, but the problem still exists even after the announcement of new budget,” he said. “Markets are really unstable due to levy of additional three per cent sales tax. It has really created problems,” he added. He urged the KCCI to take up this issue with the government on behalf of the Pakistan Steel.
He sought government’s help for bringing the import duty on raw material at zero rated duty so that cost of production could be curtailed. It will also help the industry in making its products competitive in the local as well as in the world markets.
On recovery of amount by the National Accountability Bureau (NAB), he said he had urged the government that the PS should get the recovered amount.
He said the 2001-02 was a difficult year for Pakistan Steel and that could be one of the reasons of decline in sales by Rs3 billion. Besides many anomalies like allowing cheap secondary steel products, which the PS pointed out to the government, were not removed last year.
PS sales in 2001-02 stood at Rs14.9 billion against the estimates of Rs18.1 billion. Sales in 2000-01 were Rs17.5 billion as against the estimates of Rs15 billion.
Under the restructuring plan, the total staff strength of the PS as on July 1, 2002 now stands at 15,053 as compared to 23,494 prior restructuring. “Our target is to bring the manpower at 12,500,” he added.
Earlier, president KCCI, Haroon Bari said it is good to see Pakistan Steel on the road of prosperity again since it has started re-paying huge financial debt of around of Rs19.8 billion. Its production is showing upward trend and around 43 down stream projects have been reportedly set up.
