In 2024, Pakistan’s finished steel imports rebounded from an 8-year low in 2023, according to data from the Pakistan Bureau of Statistics (PBS).
The country imported 2.93 mln tons of finished steel last year, a 17.6pct YoY increase from 2.49 mln tons in 2023. In December 2024, imports rose slightly by 0.7pct YoY to 209,767 tons.
In 2023, finished steel imports had fallen to their lowest level since 2014 due to the country’s economic challenges, which significantly impacted steel demand. The sharp decline since the second half of 2022 was largely attributed to difficulties in securing Letters of Credit (LC) amid import restrictions and a shortage of USD, a consequence of the economic crisis.
Despite the rebound in steel imports, Pakistan’s industrial activity remains in contraction. The Large-Scale Manufacturing (LSM) sector recorded a 1.25pct YoY decline during the first five months of FY25 (July-November), according to PBS. Domestic flat steel (cold-rolled steel) production also fell 2.74pct YoY to 1.44 mln tons. LSM, which includes establishments with 10 or more employees, is a key indicator of industrial health in the country.
Analysts believe the recent interest rate cut could ease borrowing costs, providing relief to businesses. This move is expected to boost investment and consumer spending, potentially supporting steel demand in the near future.
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