KARACHI: The Pakistan Steel Melters Association (PSMA) and Large Scale Re-Rollers (LSR) have demanded further levy of 40 per cent regulatory duty (RD) on import of steel billets, bars and wire-rods.

The PSMA and LSR represent a majority of Pakistan’s steel industry, having a processing capacity of over four million tonnes per year, an investment base of over 100 billion, and contributing over 20bn to the national exchequer each year.

The imposition of 15pc RD was nullified because of increased dumping margins by foreign manufacturers, reduction in customs valuations and falling prices of steel in the international market. The steel oversupply problem in the world is getting more acute and that is resulting in governments handing out subsidies disguised under policy initiatives to keep their steel industries alive.

The 15pc RD was levied in January 2015 and the government earned handsome revenue.

Those reliant on steel imports have also not been priced out of the market as over 80,000 tonnes of steel billets were imported since the levy and LSM growth has been positive in the steel sector, an official of PSMA said.

The association had initially requested the government to levy 40pc RD on steel billets, bars and wire-rods but only 15pc was levied. Now that the government has seen how beneficial the RD on steel products has been, we are requesting for levy of 40pc RD, the official said.

Published in Dawn, May 5th, 2015

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