ISLAMABAD: T he Competition Commission of Pakistan (CCP) has released a report titled “Competition Assessment Study of the Steel Sector in Pakistan,” highlighting key competition-related challenges faced by the industry.
The study underscores the absence of a national steel policy and recommends the establishment of a dedicated Steel Ministry, citing successful models from China and India, said a release issued here on Monday.
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Pakistan’s manufacturing sector has remained a cornerstone of economic expansion, contributed 71 percent of total exports and employed about 15 percent of the workforce.
Within this sector, the steel industry plays a vital role. The report explores it from a competition perspective.
Large Scale Manufacturing (LSM) dominates the sector, accounting for more than 69 percent of manufacturing and 8.2 percent of GDP. In FY24, local steel production was 8.4 million MT, including 4.9 million MT of long steel (billets and ingots) and 3.5 million MT of flat steel (coil and plates). Steel scrap imports stood at 2.7 million MT, underscoring the industry’s reliance on imported raw material. Despite this, per capita steel consumption remains low at 47 kgs, reflecting limited industrial activity and slower infrastructure development.
Demand is driven by infrastructure development, urbanization, industrial growth, and major projects like CPEC, with construction and real estate as key consumers. On the supply side, the industry faces heavy import dependence, energy constraints, and limited local raw material availability.
