May 30, 2008	Friday	Jamadi-ul-Awwal 24, 1429

LAHORE, May 29: The Pakistan Steel Re-Rolling Mills Association has demanded withdrawal of 35 per cent cash margin imposed on import of raw material to save the industry from closure.

The executive committee of the association which met here on Thursday to discuss the issue said that the State Bank had imposed cash margin condition on the ground that more goods were being imported than actual requirements.

The reason is not valid for the steel re-rolling industry as it had to import 40 per cent of its raw material from abroad, the association said, adding that the cash margin condition would result in substantial increase in operation cost of the industry already suffering production losses due to gas and electricity load-shedding.

The PSRMA was of the view that the withdrawal of cash margin was also necessary because it would result in further increase in the already high prices of steel products.

Meanwhile, the Lahore Township Industries Association has also urged the government to restore zero cash margin condition for import of raw materials for saving the export-oriented industry from closure.

It said that the units in the Quaid-i-Azam Industrial Estate, which are mostly export-oriented, would be adversely affected by 35 per cent cash margin condition.