Pakistan produces 6MT of steel annually

ISLAMABAD: The country produces six million metric tons of steel per year, as per a report published by the State Bank of Pakistan (SBP).

This includes raw products, iron ore and scrap flat products, sheets and plates used in the automotive sector, and long products (steel bars, wire rods, rails, and structures used in infrastructure development, and tubes and pipes).

However, per capita steel consumption in Pakistan is very low at 23.5 kilograms against 58.6 kilograms in India, as well as the Asian average of 261.3 kilograms and the global average of 216.9 kilograms, the report added.

The government’s increased focus on infrastructure has resulted in the initiation of a series of development projects during the last two years.

These include foreign funded projects, particularly those under the China-Pakistan Economic Corridor (CPEC).

Besides this policy focus has also encouraged private firms to invest in various projects.

Given the critical role of steel in the development of roads, railway, dams, and power infrastructure, as well as the current pace of development projects being pursued in the country, the demand for steel and allied products is expected to increase significantly.

In order to meet this higher demand without resorting to imports over the medium to long term, the country will need sizable investment in this industry in the upcoming year.

Pakistan steel industry comprises a complete and a closely intertwined value chain, from pig iron furnaces to downstream sectors and end user industries.