RAWALPINDI, April 1: The Engineering Development Board’s Committee on Competitiveness and Efficiency Improvement in Steel Sector has finalised its recommendations for incorporation in the federal budget for 2008-09.

The committee, which met in Islamabad on Tuesday under the chairmanship of its convener Tawfiq H. Chinoy, said the recommendations were being forwarded to the Federal Board of Revenue for final approval. The committee agreed that the incentives would be linked with improvement of efficiency especially in the energy sector.

The committee divided its recommendations into short- and long-term categories. The short-term proposals, concerning the federal budget, were finalised on Tuesday, while the long-term recommendations would be taken up in the near future, a press release of the EDB stated.

The committee emphasised that the survival of steel sector depend on the development of local inputs especially iron-ore deposits. The manufacturers briefed the meeting about the steps taken by them in this regard. It was revealed that the industry would be using 40 per cent local iron ore by 2010.The committee underlined the need for controlling the rising price trend but felt helplessness due to international market trends. The only way out was found to be improved efficiencies in order to remain within the reach of consumers.

The EDB had formed 20 sectoral committees for suggesting tariff structure in the forthcoming budget (2008-09). Each committee comprises of manufacturers and experts as members and is headed by an experienced industrialist/expert as its convener.