Pakistan’s competition watchdog has called for national steel policy, dedicated ministry to rescue ailing sector
ISLAMABAD:
The Competition Commission of Pakistan (CCP) has recommended the overhaul of the steel industry by announcing a national policy and setting up a dedicated ministry to revive the sector, which is struggling to survive in the face of several challenges.
The CCP on Monday released a report titled “Competition Assessment Study of the Steel Sector in Pakistan.” It quoted the example of Pakistan Steel Mills (PSM), which has collapsed, leaving liabilities of Rs400 billion.
The commission also highlighted key competition-related challenges being faced by the industry. The study pointed to the absence of a national steel policy and recommended the establishment of a dedicated steel ministry, citing the successful models in China and India.
The CCP emphasised in its report that Pakistan’s manufacturing sector had remained a cornerstone of economic expansion, contributing 71% of total exports and employing about 15% of the workforce. Within this sector, the steel industry plays a vital role. The report explores it from a competition perspective. Large-scale manufacturing (LSM) dominates the sector, accounting for more than 69% of manufacturing and 8.2% of GDP.
PSM, once a strategic asset with 1.1 million tons of annual production capacity, has not been operational since 2015 due to financial losses and outdated technology, leaving liabilities of Rs400 billion. In contrast, international peers like China, India and Russia have advanced through government support, innovation and strategic investment.
Lessons from global players highlight the need for Pakistan to develop local coal and iron ore, modernise infrastructure and adopt sustainable, energy-efficient technologies.
