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PSMA currently in talks with Government bodies to make solution of following problems faced by All Steel Melters in Pakistan.

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 huge.

Sales Tax
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 suggested.

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 foreign exchange.

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.