Steel sector seeks bailout package due to virus impact

KARACHI: The Pakistan Steel Re-Rolling Mills Association on Sunday sought the federal government’s intervention in saving the ailing industry from the adverse impact of the coronavirus outbreak.

In a statement, the association’s chairman Karim Aziz Malik said as the coronavirus had upset global and Pakistan’s economy to a great extent their industry needed a bailout package.

He said Pakistan’s steel industry was suffering from a financial crisis due to the sudden outbreak of the pandemic, which had disturbed pace of work on public sector developmental projects and CPEC.

Malik, who has also served as Vice President of FPCCI, said prevailing circumstance had reduced the turnover of steel industries to unsustainable levels.

Moreover, he said, high mark up on running finance facilities, 1.5 per cent turnover tax on sales, withdrawal of steel industry from fixed sales tax regime and increasing utility bills had taken the toll on the industry.

Malik said the business community hoped that the business and coordination committee appointed on the directions of Prime Minister Imran Khan for the revival of the industries would announce a relief soon.

He said the government should consider slashing bank mark up to zero per cent and mark up payment should be deferred to zero for six months by the State Bank of Pakistan.

Turnover tax should be reduced to 0.25pc from existing 1.5pc while the fixed sales tax regime should be restored for the steel industry instead of the federal excise duty, he further suggested.

The steel miller further said the government should consider the revival of the steel industry and include recommendations of this sector in the forthcoming relief package.