ISLAMABAD: The Board of Investment (BOI) has asked the Ministry of Science and Technology (MoST) and the Pakistan Standards and Quality Control Authority (PSQCA) to take immediate measures to curb the production and sale of substandard steel in the country. This directive comes in response to concerns raised by the Pakistan Association of Large Steel Producers (PALSP) over the widespread availability of non-compliant steel products.
In its official communication dated December 5, 2024, the BOI emphasized that substandard steel not only poses a significant risk to public safety but also hinders Pakistan’s industrial development, foreign investment potential, and aspirations to become a steel-exporting nation.
The memorandum referenced discussions from a high-level meeting held on November 22, 2024, chaired by the Federal Minister for Investment. During the meeting, key decisions included engaging PALSP for feedback and involving MoST and PSQCA in devising actionable solutions.
Earlier, PALSP, in a detailed letter to BOI, highlighted longstanding enforcement challenges in steel production standards. Despite PSQCA regulations being in place for over two decades, implementation remains inadequate, allowing non-compliant steel to proliferate in the market. PALSP proposed various measures to strengthen enforcement, such as rationalizing marking fees to encourage compliance, suspending operations of non-compliant manufacturers, and updating PSQCA standards to address inferior materials like “Bala.”
PALSP further recommended appointing full-time Director General for PSQCA having relevant qualification and experience of standardization and quality and ensuring that only PSQCA-compliant materials are used in construction projects approved by building control authorities. The association also stressed the need to differentiate between quality-compliant and non-compliant steel producers during consultations to avoid delays in decision-making.
In response to PALSP’s concerns, BOI has directed MoST and PSQCA to report back with comprehensive feedback on compliance and progress by December 9, 2024. PALSP has also submitted two detailed presentations to BOI, outlining the economic and safety hazards posed by substandard steel and suggesting actionable solutions.
BOI’s proactive approach underscores its commitment to ensuring public safety and fostering industrial growth. As Pakistan aims to strengthen its steel production capabilities and attract foreign investment, strict enforcement of quality standards will be pivotal in achieving sustainable progress.
