Pakistan Association of Large Steel Producers (PALSP) welcomes the effective measures taken by the Pakistan Customs Authorities at Taftan border to curb the menace of smuggling of Steel from Iran to Pakistan.
Chairman FBR and the Quetta Customs Collectorate has taken these measures on the orders of the Prime Minister Imran Khan who has issued strict directives for curbing the menace of smuggling, which is destroying the local industry.
Also, PALSP, that represents Pakistan's largest steel units in the long products has been making SOS appeals to the prime minister as well as the concerned Govt departments by exhorting them for taking anti smuggling measures and also to discourage the abusage of certain rules/SRO wherein prime steel material was being allowed to be imported in the garb of scrap. It may be mentioned here that there has been huge surge in import of prime Steel bars, in the garb of re-rollable scrap, and thousands of tones of steel found its way into Pakistani markets from Iran, during the last several months. This has been one of the biggest factors for huge loss of revenue to the Govt as well as closure some of the local steel units in the country.
It many be mentioned here that the local steel industry in the recent years invested heavily in order to meet the growing demands of steel domestically especially for the Prime Minister's housing project and also for the CPEC. However, as a result of growing smuggling and abusage of rules, some of the leading companies declared heavy losses and many plants got closed this year. Also, as a result of smuggling coupled with slow-down of economy, some of the big local investors, who were all set to make more investments in Pakistan's steel sector, were forced to put their expansion plans on-the-hold.
According to media reports, as a result of the much-needed measures taken by the Customs authorities, the illegal Trade activities between Pakistan and Iran via the Taftan border remained suspended for the last few days. According to PALSP, 'we welcome the measures taken by the Federal Board of Revenue (FBR) and Pakistan Customs for stopping this illegal trade which is destroying the local industry.'
PALSP has appreciated the fact that the Customs authorities at Taftan border detained trucks on the information that goods loaded on the said trucks was not scrap - but brand new / prime steel that was meant to be imported in the garb of scrap.
The PALSP believes that effective measures taken against smuggling will encourage the local investors to make more investment here as the local industry is fully capable of meeting the entire demand of steel locally.-PR
Copyright Business Recorder, 2019
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