Steel Industry Welcomes Supportive Budget Proposals

Islamabad: The Finance Bill 2025 introduces measures aimed at supporting Pakistan’s steel industry, offering relief to listed companies that have faced competitive disadvantages. Key proposals include the gradual phasing out of sales tax exemptions for regions such as FATA and PATA, with the rate increasing from 10% in fiscal year 2026 to 16% by fiscal year 2029, in an effort to level the playing field across the industry.

Additionally, the government has proposed a 1% reduction in duty on steel scrap imports, alongside the elimination of a 2% additional customs duty. This adjustment results in a total relief of 3% on scrap imports, potentially reducing costs for steel manufacturers.

These measures, outlined by JS Global, are anticipated to positively impact the construction and steel sectors. However, the industry continues to grapple with internal challenges that hinder its performance in comparison to other construction materials.

Stakeholders in the steel sector are hopeful that the proposed changes will foster a more competitive environment and alleviate some of the financial pressures they have been experiencing.