Karachi : Khalid Tawab, former Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), former Chairman of the Iron and Steel Merchants Association and Regional Chairman United Business Group (UBG) has expressed concern over the alarming decline in Pakistan’s iron and steel production.
According to recent statistics, the production of steel products (billets) in 2023-24 stood at 4.914 million tonnes, showing a negative growth of 7.94% compared to the previous year. This decline is largely attributed to the slowdown in the construction industry, which is a major consumer of steel products.
The iron and steel sector contributes significantly to Pakistan’s economy, accounting for 5.4% of the large-scale manufacturing (LSM) sector and providing employment to over 100,000 workers across more than 400 industrial units nationwide.
Pakistan’s exports of iron and steel and its articles in 2023 were valued at $144.1 million, with a growth rate of 3.4% compared to the previous year. However, the country’s imports of iron and steel and its articles in 2023 stood at $3.1 billion, showing a decline of 30.0% compared to the previous year.
The United States, Canada, and Poland were among the top destinations for Pakistan’s iron and steel exports in 2023, while China, the UK, and the UAE were the top sources of imports.
Khalid Tawab emphasized the need for the government to take immediate measures to support the iron and steel industry, which is facing significant challenges due to the slowdown in the construction sector. He urged the government to implement policies that would encourage investment in the sector, promote domestic production, and reduce reliance on imports.
Furthermore, Khalid Tawab stressed that the construction sector, which is a major driver of demand for steel products, also requires support and incentives to revive its growth. With over 70 ancillary industries related to construction, including cement, ceramics, paint, electric and electronic equipments, glass etc, a thriving construction sector can have a multiplier effect on the entire economy. It is essential that the government provides a comprehensive package to support the construction sector, including incentives for housing and infrastructure development, to create a conducive environment for growth and job creation, Khalid Tawab added.
The iron and steel industry is a critical component of Pakistan’s economy, and it is essential that we take steps to support its growth and development, Khalid Tawab said. We urge the government to work with the industry to address the challenges it is facing and to implement policies that would promote its growth and development.
