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ISLAMABAD: The documented steel sector has approached Finance Minister Shaukat Tarin to stop allowing duty-free import of locally-manufactured goods and materials for construction of Gwadar International Airport and development of Gwadar Free Economic Zone projects.

In this connection, an appeal has been filed with the finance minister to ensure usage of locally-produced steel for construction of Gwadar Airport, SEZs, Free Economic Zone as well as the CPEC projects.

The Pakistan Association of Large Steel Producers (PALSP) has strongly protested over the usage of imported steel for the construction of Gwadar International Airport, development of EPZs/SEZs/ as well as the Gwadar free Economic Zone projects by completely ignoring Pakistan's steel industry that has surplus capacity for producing world-class steel.

This is an alarming situation and most damaging for the local industry. By all means, it amounts to exporting our jobs to other countries. "As we all know that the Pakistan government is rightly focusing on mass industrial development by building special economic zones. Also, the construction of the New Gwadar International Airport (NGIA) Project has started that is one of the major projects of the CPEC, and is very important for the development of Gwadar Port as well as the free economic zones," it said.

Duties, taxes on import of steel scrap slashed

In order to make these mega project become a win-win for our industry as well as for country, the government must ensure that only locally-produced steel products that are meeting international standards (British, Chinese, the UK) must be allowed to be used; utilised in these projects as well as for other infrastructural CPEC projects.

It is notable here that the other materials such as locally-produced cement is already being supplied by local manufacturers in these projects, however, they are not purchasing locally-produced steel. In the prevailing scenario, the PALSP urges the government not to allow duty-free import of all those goods and materials that are manufactured locally in surplus capacity and meet international standards. Also, tax adjustments must be allowed (on all kinds of taxes) to local suppliers for the above-mentioned projects.

However, machinery that is not produced locally may be allowed to be imported. Government must ensure the involvement of domestic steel industry in these projects as it has surplus capacity to cater the entire demand of steel for the CPEC-related projects.

It is high time for our decision makers to realise the situation and to promote the domestic industry, which is the backbone of the economy of the country. The Government of Pakistan has to take steps to safeguard the interests of the domestic industry. If we continue to rely on imports, this will result in the capture of our entire market by foreign entrants, and above all, it will immensely increase the burden on the balance of payments.

The association has hoped that the government will take measures to ensure promotion of the domestic industry. "This will eventually lead to creation of more jobs for our people, more revenue to the exchequer in the form of duties and taxes, and will help to save our foreign exchange. It will also lead to expansion of local capacities of such items," it added.

Copyright Business Recorder, 2021

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