Monday, February 6, 2023
HomeNewsLarge steel producers express concerns over non-opening of LCs -HP NEWS

Large steel producers express concerns over non-opening of LCs -HP NEWS


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Large steel producers have expressed their reservations over the non-opening of LCs.

According to the statement of the large steel producers, hundreds of industries are closed and 7.5 million people are at risk of unemployment.

The release said that large steel producers have called for help to bring the steel sector out of the LCS crisis.

The steel sector is the backbone of the country’s economy and contributes significantly to exports, which are subject to restrictions on opening of LCs.

In the recent scenario, there is a deep concern over the rise in cost of production due to the depreciating rupee and inflationary pressures.

Large steel producers have demanded that the issue of LC opening be resolved within 4 working days.

According to the statement, steel mills may shut down indefinitely due to non-availability of raw materials, 44 industries depend on steel supply, and many industries once shut down are difficult to restart.

Expressing concern on the part of large steel producers, it was revealed that cement production has recorded a 9% year-on-year decline, scrap imports have recorded a 55% decline, scrap imports of 100 million dollars in December 2022. Which is barely 2 percent of Pakistan’s total import bill.

The announcement further said that severe shortage of steel will start in the country from February and the price of steel rebar will reach Rs 2 lakh 80 per tonne.

The statement by the large steel producers also said that if imports were not allowed, cement, cables, tiles and other industries would shut down and at least 75 lakh jobs would also be lost due to the shutdown of these industries. .



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