KARACHI, Jan 17: The Pakistan Steel and Re-rolling Mills Association (PSRMA) has said that the country is facing severe shortage of quality raw material and steel products and soon price of quality steel will exceed Rs45,000 per ton, resulting in closure of many mills and creating unemployment in the sector.

The association has been drawing the attention of the government regarding shortage of quality steel in the country since September 2006, but the government had not paid any heed to the situation.

In a statement, the association said that Pakistan Steel only meets eight to 10 per cent demand which is already rising every year. However, imports at present are un-feasible due to heavy burden of taxes at import stage and rising prices in the international market. Consumer and the government projects will suffer if proper steps in consultation with all stakeholders of steel sectors are not taken, the association said.