The Pakistan Bureau of Statistics (PBS) reported that the price of steel bar products rose by 30% in the first seven months (July to January) of the fiscal year 2022-23 (fiscal year).
A PBS report found that the significant rise in steel product prices was directly correlated with the devaluation of the rupee over the proposed period, during which the rupee lost 35% of its value and increased steel import costs.
Despite the letter of credit (LC) ban, total imports of steel scrap will increase from 191,681 tons (US$100 million) and 338,832 tons in December 2022 to 225,255 tons (US$100 million) in January 2023 (US$12 million) was also mentioned.
Meanwhile, the average price per tonne of steel scrap fell from US$525 in December 2022 and US$623 in January 2022 to US$499 in January.
It’s important to note that activity in the construction industry, which relies heavily on steel, has slowed, resulting in lower than expected earnings.
The government has also introduced new taxes on steel and cement to close the fiscal 2023 revenue gap.
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