Islamabad: The Pakistan Bureau of Statistics (PBS) reported a 30% increase in steel bars and steel products’ prices in the first seven months (July–January) of the fiscal year (FY) 2022-23, the news sources reported on February 20.
The PBS report indicates that the massive increase in the prices of steel products is directly correlated with the devaluation of the rupee in the proposed period, where the rupee lost 35% of its value, thereby increasing the import cost of steel. It was also mentioned that despite the letters of credit (LCs) ban, total iron and steel scrap imports still rose to 225,255 tonnes (USD 112 million) in January 2023 from 191,681 tonnes (USD 100 million) in December 2022 and 338,832 tonnes (USD 211 million) in January 2022. On the other hand, the average per-tonne price of iron and steel scrap in January fell to USD 499 from USD 525 in December 2022, and USD 623 in January 2022.
It is important to note that the construction industry, which is heavily dependent on steel, has seen a slowdown in activity, leading to lower than expected revenue generation. The government has also imposed new taxes on steel and cement to shore up the revenue gap in FY-2023.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
