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Coronavirus bankrupting steel industry

KARACHI, MAR 23 (DNA) – The Steel Re-Rolling Mills Association on Monday said it is under stress due to coronavirus pandemic, therefore, the government should consider providing it with a bailout package.

In a statement, Karim Aziz Malik, Chairman Pakistan Steel Re-Rolling Mills Association said that the coronavirus has upset global and Pakistan’s economy to a great extent.

He said that Pakistan is a developing country and its steel industry is suffering from a financial crisis due to the sudden outbreak of pandemic which has disturbed pace of work on public sector developmental projects and CPEC.

Karim Aziz Malik who has also served as Vice President FPCCI further said that circumstance has reduced the turnover of steel industries to unsustainable levels.

Moreover, he said, high mark up on running finance facilities, 1.5 percent turnover tax on sales, withdrawal of steel industry from fixed sales tax regime and increasing utility bills has taken the toll on the industry.

He said that the business community hope that business and coordination committee appointed on the directions of Prime Minister Imran Khan for the revival of the industries is to announce relief soon.

He said that the government should consider slashing bank mark up to zero percent and mark up payment should be deferred to zero for six months by the State Bank of Pakistan. Turnover tax should be reduced to 0.25 percent from existing 1.5 percent while the fixed sales tax regime should be restored for the steel industry instead of federal excise duty.

He said that the government should consider the revival of the steel industry and include recommendations of this sector in the forthcoming relief package. = DNA






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