KARACHI: The Pakistan Association of Large Steel Producers (PALSP) has welcomed the new steel-sector tax framework introduced through the Finance Act 2026 and subsequently implemented by the Federal Board of Revenue through S.R.O. 1245(I)/2026 and related Sales Tax General Orders (STGO).

Under STGO 16 of 2026, only 31 manufacturers — out of more than 200 steel producers operating in Pakistan — have been recognised as meeting the prescribed documentation, scrap consumption, and FBR integration requirements.

PALSP Secretary General Syed Wajid Bukhari said these manufacturers will be charged sales tax at the reduced rate of Rs5 per electricity unit, compared with Rs30 for local-scrap-based production and Rs35 per unit for captive or self-generated power.

Published in Dawn, August 7th, 2026