LAHORE: Traders, importers and Industrialists gave mixed reaction on imposition of 15 percent regulatory duty on all steel billets, bars and wire rods.
Former Lahore Chamber of Commerce President Kashif Anwar told Customs Today that regulatory duty should not be imposed on wire rod and other products of steel. “It should be imposed if the local demand is fulfilled by the local industry”.
“I myself is in favour to protect the local industry. Our moto is to increase exports and decrease imports. If it will be imposed smuggling and under- invoicing will increase. Inflation will increase. Unemployment will increase,” he told this scribe. He added that wire rod is not produced in Pakistan and the cost of construction will increase. “Again that sector will be penalised which is documented and organized.”
“It will not protect local industry rather close cottage industry. The government should have to discuss policies with the stakeholders also. Only one strong sector is listened for the implementation of their policies which is in their favour. Our leaders should raise voice.
On the other hand, the Pakistan Steel Melters Association has welcomed the levy of 15% regulatory duty on all steel billets, bars and wire rods by the government. This decision has come at a time when the industry was in grave danger of being wiped out by imported steel products that come at a cheaper price because of FTA concessions, subsidies offered by exporting countries by way of export rebates and energy subsidies, and mis-declaration at port to dodge customs duty that are estimated to be in the range of 20-25% of the product cost.
The cost difference between imported and locally manufactured billets, bars and wire rods had increased to an unprecedented level in the range of Rs 9,000 – 14,000 per tonne depending on the product. “The government has acted swiftly and in the best interest of the nation by providing an environment of fair competition and level playing field that will foster further investment in the steel sector,” said a member of PSMA.
Over the past 12 months over 175,000 tonnes of only steel billets, bars and wire rods have been imported in the country under various PCT Codes. “When imported products eat away market share from local manufacturers we are forced to reduce output, lay-off workers, and in some cases close down altogether,” said a manufacturer whose plant has been closed for the past many months. Members of PSMA manufacture steel billets, bars and wire rods were facing stiff and un-equal competition from imported steel products even though there is ample capacity in the country’s manufacturing sector to cater for local steel demand.
