July 1, 2003	Tuesday	Rabi-us-Sani 30, 1424

LAHORE, June 30: The Pakistan Steel Re-rolling Mills Association on Monday demanded of the government to reduce customs duty on import of raw steel from present 20 to 10 per cent.

In a letter to Industries and Production Minister Liaquat Ali Khan Jatoi, the association claimed that around 300 re-rolling mills faced closure because of the shortage of raw material. Ship-breaking, which provided around 400,000 to 500,000 tons out of total consumption of 800,000 tons has come to nil because of various factors. The industry has not been able to import raw steel because of high duties on it.

The shortage has led to speculative buying and unjustified inflationary increase in prices. Since July 2002, Pakistan Steel has increased price 17 times; almost 34 per cent in last one year. Middlemen were charging hefty sums and miller had not option but to pay for keeping their mills running, it said.

In order to save the industry, the ministry, in addition to lowering custom duties, should also revive categories of re-rollable scrap, it demanded.