KARACHI: The Competition Commission of Pakistan (CCP) has called for the establishment of a dedicated steel ministry and the formulation of a national policy to address long-standing distortions in the country’s steel industry, which it says faces weak regulation, unfair tax exemptions and heavy import dependence.
The steel sector remains central to Pakistan’s manufacturing base, contributing significantly to exports and employment but struggling with fragmentation and policy neglect. Large Scale Manufacturing accounts for more than 69 percent of total manufacturing and 8.2 percent of GDP, yet per capita steel consumption is only 47 kilograms, far below regional averages. The industry depends heavily on imported scrap, faces chronic energy shortages and produces nearly 60 percent of its output below standard due to weak enforcement and regulatory oversight.
In light of these challenges, the Competition Commission of Pakistan on Sunday released a report titled “Competition Assessment Study of the Steel Sector in Pakistan,” identifying competition-related bottlenecks and recommending reforms to promote fair market conditions and long-term sustainability.
“The study underscores the absence of a national steel policy and recommends the establishment of a dedicated Steel Ministry, citing successful models from China and India,” the CCP said in the statement.
