The production of iron and steel in the last 10 years has swelled by 196 percent to 4.777 million tonnes in FY21 from 1.616 million tonnes in FY12.
According to the Pakistan Bureau of Statistics, the production of iron and steel has gone up from 1.616 million tonnes in the fiscal year 2011-12 to 4.777 million tonnes in the fiscal year 2022-21. Flat steel products which are used in the electronic industry grew to 3.296 million tonnes in the outgoing fiscal year from 1.850 million tonnes in the fiscal year 2012.
As a result of an increase in steel-related products, the import of raw materials also went up. The import of iron and steel scrap increased to 4.719 million tonnes, costing $1.86 billion in 2020-21 as compared to 1.568 million tonnes amounting to $538 million in 2012. The import of iron and steel too went up to 2.99 million tonnes, amounting to $1.959 billion in the outgoing fiscal year as compared to 1.755 million tonnes costing $1.4 billion in the fiscal year 2012.
Syed Wajid Bukhari, the Secretary-General of Pakistan Association of Large Steel Producers said that during 2011-12, the production of steel bar was 3 to 3.5 million tonnes which have now enhanced tom 6.5 million tonnes to 7 million tonnes.
He said that the rise in the price of steel bars is due to the rise in the price of steel scrap in the global market from $300 per ton in the year 2011-12 to $550 per ton at present. The value of a local currency against the dollar was Rs 85 in 2011-12 which is now around Rs 169. The rates of gas have also increased to Rs 97 per unit at present as compared to Rs 15 per unit ten years ago.
The electricity charges also went up to Rs 21 per unit from Rs 6 per unit in 2011-12. The freight charges have also gone extremely high. The consumption of steel bar is 80 percent in private sector whereas 20 percent steel bar is used by the public sector.
Former Chairman of the Association of Builders and Developers (ABAD) said that the demand for steel bars has gone up due to 80 percent construction work on high-rise buildings in Punjab.