Pakistan's Engineering Development Board (EDB) has urged the Ministry of Industries and Production to treat scrap as a basic commodity for the steel industry and allow steelmakers to open Letters of Credit (LC) for scrap import.
The EDB said that the import of any raw material that is not produced locally but is critical for the final steel production should not be restricted at the import stage to ensure fair competition in local production.
The Board emphasized that steel products are widely used in the construction industry and are very important for construction projects.
In addition, local steel rebar manufacturers rely on imported steel scrap to produce steel products for the construction industry.
Therefore, the opening of LC for the import of steel scrap will benefit both sectors.
The EDB's request is currently being reviewed by the Ministry of Industries and Production and a decision is expected to be made soon.