ST on local ore, curb on coal export: PSM proposal to destroy Balochistan economy: BMOA

The proposal of Pakistan Steel Mills (PSM) to impose sales tax on the fixed price on local iron ore suppliers and ban on export of all sorts of items that are consumed as raw material, including iron ore and coal, would destroy Balochistan''s economy.
These concerns have been expressed by Abdul Majid Notazai, Chairman of Balochistan Mine Owners Association (BMOA), in a letter sent to the Federal Minister for Industries and Production over the reported proposal of PSM to the Ministry of Industries & Production to recommend to the Economic Co-ordination Committee (ECC) of the Cabinet for the imposition of these restrictions.
"We seek your government''s intervention to please act upon judiciously to safeguard the economic activity of Balochistan in the mines and minerals sector, which includes iron ore, in order to protect the interest of labour force of over 100,000 engaged in mining of iron ore in Balochistan," he said in the letter.
"The proposal is discriminatory in nature and is condemned by the Balochistan Mine Owners Association," he said. PSM, on account of the proposed imposition of sales tax on local supply of iron ore and/or imposition of ban on its exports will ultimately put the Balochistan miners at their mercy without justification to set off losses of over past three years caused as a result of their own mis-management.
PSM on the one hand is importing iron ore at an average price of $140/ton, plus they pay sales tax, port expenses and discharge costs including transit to Pakistan Steel from port area, while on the other hand, it is using discriminatory pressures and paying an average of $80 per ton (50 percent lower than the international price) to the local iron ore mine owners of Balochistan, which include deduction of sales tax on the stocks purchased and delivered to Pakistan Steel by the local suppliers, which include mining expenses, royalty, heavy transportation costs from Balochistan mining area due to inflated diesel prices and labour costs of loading, unloading, etc.
BMOA has expressed fear that ban on export of iron ore would further discriminate the local suppliers of Balochistan engaged in iron ore, and eventually it would render more than 100,000 people of Balochistan jobless. The Association has demanded that the federal government should avoid taking decision which may be discriminatory against the mine and mineral sector of Balochistan.
Pakistan Steel may not be allowed to use discriminatory lever in this regard, he said. Notazai has requested the Government of Pakistan to devise a policy to encourage mining and minerals sector for healthy growth of economy and to provide relief to the people of Balochistan with due right of reasonable price in comparison with the international market rates of iron ore for supply to Pakistan Steel Mills.