ISLAMABAD: The prices of steel bars and products in Pakistan have surged by 30% in the first seven months of the fiscal year 2022-23, according to a report by the Pakistan Bureau of Statistics (PBS).
The report highlights that the devaluation of the Pakistani rupee has led to a rise in the import costs of steel, causing an increase in steel prices.
Moreover, the ban on letters of credit (LCs) has not deterred the import of iron and steel scrap, with imports reaching 225,255 tonnes, valued at USD 112 million, in January 2023.
Despite this, the average per-tonne price of iron and steel scrap in January decreased to USD 499 from USD 525 in December 2022 and USD 623 in January 2022.
The construction industry, which heavily relies on steel, has experienced a slowdown, leading to lower-than-expected revenue generation.
Furthermore, the government has imposed new taxes on steel and cement to address the revenue gap in FY-2023.
