PSMA currently in talks with Government bodies to make
solution of following problems faced by All Steel Melters in
Problems Faced By Steel Melting Industry.
The following points are under discussion with the Government:-
Pricing Policy of Pakistan Steel (Billets).
This has been a long outstanding issue. The Pakistan Steel
have kept their prices to a level which are neither realistic
nor any relation with the international billet prices. It has
adverse repercussions on the local steel industry.
With Holding Income Tax.
In the budget 2008 - 2009 with holding income tax of 10% was
imposed on electricity bills and 3.5% on local supplies. In case
of furnaces 10% imposition in a huge amount because power is
consumed as a raw material. Its impact on steel industry is
Due to escalating steel prices the sales tax was
increased form Rs 4.75 per unit of electricity to Rs 6/= per
unit of electricity. Now the steel prices have decreased
considerably and a downward revision to a realistic level is
25% Levy of Export Duty.
The prices of the steel have come down. There is surplus
stock with the manufacturers. Export duty is abolished to earn
Imposition of Regulatory Duty
It is feared that because of global recession dumping of
steel is likely to take place. Countries like India, China and
European Union has already imposed regulatory duty. It is
imperative that we should also take on immediate steps to
protect steel industry.
Supply of Electricity
The supply of electricity to the steel melting furnaces has
been considerably decreased. Unscheduled load shedding is
experienced. Advance notices need to be given for any load
shedding and uninterrupted supply be ensured.