KARACHI: In a recent letter to Pakistani Prime Minister Shehbaz Sharif, the Secretary General of the Pakistan Association of Large Steel Producers (PALSP), Syed Wajid Bukhari, expressed concerns about the thriving smuggling of steel bars from Iran into Balochistan, Pakistan.
Bukhari highlighted that over 80% of steel bars sold in Balochistan are smuggled into the country through misdeclaration, under-invoicing, and other illegal means, causing a revenue loss of approximately Rs25 billion annually to the national exchequer.
Bukhari also stated that around 500,000 tonnes of steel bars are smuggled into various parts of Pakistan from Iran and Afghanistan, posing a significant threat to local manufacturers.
The unchecked inflow of smuggled steel is creating survival challenges for the industry, as many units are operating at a fraction of their capacity due to a shortage of raw materials.
He added that despite repeated requests to the government to deter this unlawful activity, no effective measures have been taken to control this illegal trade.
He further warned of the implications of smuggling, including the possibility of money laundering, as Pakistan and Iran do not have formal banking channels for this purpose.
To counter this threat, Bukhari suggested that the government should allow the import of steel through sea routes only.
He also highlighted the struggles of the local industry, which is already facing significant challenges due to currency depreciation and high input costs.
Bukhari’s concerns have raised alarm bells regarding the unchecked inflow of smuggled steel into Pakistan, which is causing job losses and a significant revenue loss to the country.
The government’s response to this issue remains to be seen.
