Islamabad: The Engineering Development Board (EDB) has written a letter to the ministry, urging them to prioritise the import of steel scrap and other steel-related items by allowing the opening of letters of credit (LCs) for the sector, news sources reported on March 13.
In a letter to the ministry, EDB stated that it has examined the plight of the steel sector and appeals to the government to uphold the State Bank of Pakistan’s (SBP) policy of prioritising steel and steel products. The EDB said that it believes that the import of any type of raw material that is not manufactured locally for the manufacture of engineering goods should not be restricted at the import stage to support and provide a level playing field to the local manufacturing industry. It is further said that the delay in the opening of LCs will result in the halting of all construction activities in the country, which will result in widespread unemployment.
It merits mentioning that steel products have seen an unprecedented increase in prices that has led to the halt of construction activities. The SBP has placed a ban on the import of steel products, citing financial constraints.