Islamabad: As per news stories published on March 13, the Engineering Development Board (EDB) has written a letter to the ministry of industries and production pleading with it to give priority to the import of steel scrap and other steel-related items by allowing the opening of letters of credit (LCs) for the industry.
EDB wrote to the ministry stating that it had looked into the situation facing the steel industry and urged the administration to maintain the State Bank of Pakistan's policy of giving priority to steel and steel-related products. The EDB stated that it does not believe that import restrictions should be placed on the importation of any form of raw material used to create engineering goods that are not produced domestically. It is further added that the delay in the opening of LCs will result not only in damaging construction activities in the country but also will result in the general unemployment level.
It is pertinent to note that the steel industry is a crucial sector for the expansion of the economy, and allowing the import of steel scrap is a step in the right direction for the development of the sector. The opening of LCs for the import of scrap steel will enhance the development of the construction industry by assisting in meeting the rising demand for steel products. It is also important to note that the steel industry has experienced an extraordinary price rise, which has stopped construction work. The SBP has barred the import of steel products due to budgetary restrictions.