ISLAMABAD: In line with other industries, the country’s steel industry has also sought exemption from the ongoing lockdown, as “it is finding it difficult to even pay salaries to the employees”.
“The prime minister had announced a special package for the construction industry, but there were no incentives for the steel sector, which is the backbone of the construction industry,” said a statement issued by the Pakistan Association of Large Steel Producers (PALSP) on Friday.
It stated that the ongoing lockdown caused by COVID-19 outbreak have pushed the steel industry towards a crisis-like situation, adding that in order to minimise the losses of the industry, the government must immediately open the sector.
“If necessary decisions are not taken immediately, the construction industry will not be able to commence operations on April 14th, as there will be no steel available,” the statement read. “It will take at least one week for the manufacturers to produce steel and make it available on construction sites.”
The association demanded the government to open steel industry latest by April 15, after which most of PALSP member companies would be forced to go move ahead with layoffs.
“Steel is the biggest consumer of electricity and at this point in time, the IPPs are being paid on their ‘capacity charges’ whilst they are not producing any electricity. This issue can be resolved with the opening of the steel industry, which will reduce financial burden from the shoulders of the government,” the association stated.
The industry has consumed Rs8 billion worth electricity in the month of March. In case the lockdown continues and the industry is not allowed to resume operations, servicing of these payments would be next to impossible.
Quoting the PM’s statement of ‘Corona se darna nahi, larna hai’, the association stated that “we must ensure economic uplift of the country instead of bowing before the COVID-19”.
