The Engineering Development Board (EDB) has asked the Ministry of Industries and Production to give top priority to the steel sector by allowing opening of the letters of credit (LCs) for the import of steel scrap.
The EDB has written a letter to the Ministry of Industries and Production to declare steel industry raw material (scrap) as an essential item.
The State Bank of Pakistan (SBP) issued a circular on December 27, 2022, to prioritize/ facilitate the imports of different sectors under which the imports related to essential sectors such as food and pharmaceutical were facilitated besides imports related to energy, export-oriented industry, and project or agriculture inputs.
The EDB is of the view that the import of any type of raw material, not manufactured locally, for the manufacturing of engineering goods may not be restricted at the import stage in order to support and provide a level playing field to the local manufacturing industry.
Further, steel sector products are used in the construction industry for which the local manufacturers of steel rebar are importing steel scrap, therefore, their issues regarding the import of steel scrap i.e. opening of LCs may be favorably considered, the EDB said in its letter.