Pakistan’s federal government is likely to extend the 5pct and 10pct regulatory duties on flat steel products until March 31, 2025, to protect the local steel industry, according to sources close to the Secretary of Commerce, as reported by Business Recorder.
The duties, initially imposed through the Finance Act 2024 on the recommendation of the Tariff Policy Board (TPB), were set to expire on December 31, 2024. However, following industry requests, the TPB recommended in its 61st meeting on December 26, 2024, to extend the duties until March 31, 2025, with plans to revert to original rates (0pct and 5pct) from April 1, 2025.
During the TPB meeting, International Steel Limited requested extending the duties on various finished flat steel products until June 30, 2025. The company also suggested imposing a 10pct regulatory duties on galvalume steel coils and sheets to counter circumvention of anti-dumping duties on galvanized steel.
The Joint Secretary (Tariff Policy) outlined the current tariff structure, which includes customs duties (11-20pct), additional customs duties (2-6pct), regulatory duties (5-10pct), and anti-dumping duties (5.36-40.47pct). He noted that during July-November 2024-25, the import value of flat steel products increased by only 4pct, while galvalume steel imports decreased by 13pct in value and 8pct in quantity. Contrary to the company’s claims, there was no surge in galvalume steel imports.
The Joint Secretary concluded that due to the nominal increase in flat steel imports, maintaining or increasing the regulatory duties on these products is not recommended, as it could harm downstream industries.
