Pakistan: Ship breakers hail 15% regulatory duty on importers

Pakistan Ship Breakers Association (PSBA) has welcomed the levy of 15 percent regulatory duty on the import of all steel billets, steel bars and wire rods.

Since past year, steel billets, wire rod and steel bars were being flooded into Pakistan market by way of dumping from abroad. This made the local industry unviable and therefore one of the local steel manufacturing sectors i.e wire
rod industry had totally shut down.

Dewan Rizwan Farooqi Chairman PSBA said, “Since 2010, ship breaking industry has been providing 1.2 million tonnes of steel raw material annually to the re-rolling, wire rod and steel melting industry. The ship breaking industry though massive capital investments has ramped up its ability to cater to Pakistan’s down stream industries by taking its annual capacity from 150,000 tonnes per annum in 2007 to 1.2 million tonnes per annum in 2010. This has allowed the ship breaking industry to provide Balochistan province and government with much needed revenue in the tune of Rs 11 billion annually.

Industry analysts claim imposition of Regulatory Duty has come at a critical time as steel products being imported into Pakistan via various free trade agreements and subsidies were being cleared through manipulation and mis-declaration and had created a difference of over 20 percent in the cost between locally manufactured goods, whereas the cost decrease was not being passed on to the local consumers and the importer lobby was reaping huge profits whilst the local industry was brought to a standstill.

This move by government will help in bringing some stability to the local market and curbing revenue drain while providing a level playing field for the local steel sector.

Pakistani ship breaking industry is the country’s largest steel raw material supplier to the re-rolling and wire rod industry and has invested over Rs 20 billion in Balochistan during last 5 years besides the highest revenue contributor from the steel sector in Balochistan. It is one of the largest employers in under-developed Balochistan province, employing thousands of persons.
Source: Daily Times