ISLAMABAD: The government is likely to give top priority to the steel sector products by allowing opening of the letters of credits (LCs) for import of steel scrap and other steel-related items.

In this regard, the Ministry of Industries and Production has received a letter of the Engineering Development Board (EDB).

The EDB has written a letter to the Ministry of Industries and Production on the appeal to declare steel industry raw material (scrap) as essential item/ material.

Steel industry: SBP urged to help resolve issue of LCs

The matter has been examined in EDB and it is submitted that State Bank of Pakistan issued a circular on December 27, 2022 to prioritize/ facilitate the imports of different sector/ industry under which the import related to essential sector such as food and pharmaceutical is facilitated beside imports related to energy/ export-oriented industry or project/ agriculture inputs, etc.

The EDB is of the view that the import of any type of raw materials, as are not manufactured locally, for the manufacturing of engineering goods may not be restricted at import stage in order to support and provide a level playing field to the local manufacturing industry.

Further, steel sector products are used in the construction industry for which the local manufacturers of steel bar/ rods are importing steel scrap therefore their issues regarding import of steel scrap, i.e., opening of LC may be favourably considered, the EDB added.

Copyright Business Recorder, 2023