ISLAMABAD: An Inter-Ministerial Meeting has asked Pakistan Association of Large Steel Producers (PALSP) to take up issues relating to rescheduling of loans with SBP and Finance Division, official sources told Business Recorder.
The meeting presided over by Additional Secretary, Ministry of Industries and Production discussed entire issues of the country’s steel industry.
Hadi Akberali from Amreli Steels gave a presentation on the issue relating to rescheduling of loans. He stated that the current economic situation is more adverse than during COVID pandemic and their banks have intimated that they contact the Government for desired rescheduling of loans. He requested face-saving by not reporting on SBP’s eCIB, and relief as granted during COVID pandemic.
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Attalluh Memon from SBP stated that the commercial banks are authorized to take decisions by considering their financial positions, risk/ credit assessment and as per their policies. Further, the rescheduling of loans does not affect the credit ratings of companies.
Hassan Agha of Agha Steel stated that Pakistan cannot progress without steel industry. He emphasized that they are not requesting a subsidy merely restructuring of loans and no reporting on SBP’s eCIB. Wajid Bukhari from PALSP intimated that considerable amount is spent on Pakistan Steel Mills on account of grants etc., so PALSP members may also be given relief to boost steel production. Steel is power intensive industry and used as raw material, hence deserves the status of zero-rated export sector.
JS(CF-I), Finance Division stated that economic conditions are affecting all the sectors of the country, so a detailed meeting may be held with industry to facilitate them. CEO EDB stated that Mughal Steel has installed advanced automated plant and set a target for exports. The detailed discussions are needed to address industry concerns.
JS (Tariff), Ministry of Commerce stated that reporting to eCIB is common for all sectors. Hence its profiling objective cannot be achieved due to non-reporting. Further, the major portion of production of large steel producers is sold in local market and low quantity is exported and protection is already granted on finished products of steel. In order to increase competition in the market, import duties need to be reviewed after studying the whole chain of steel sector.
Copyright Business Recorder, 2024