Mughal Iron & Steel expects to complete the modernization of its re-rolling facility by Q1 2026, CEO Shakeel Ahmad announced at a conference hosted by Topline Securities.
The BMR (Balancing, Modernization, and Replacement) project aims to convert the facility into a dual-purpose rolling mill, enabling flexible production of both steel rebars and medium sections. Once operational, the upgraded plant will be capable of producing 8,000 to 10,000 tons of medium sections per month, according to an earlier stock exchange filing.
The company views the proposed FY26 budget as highly supportive for the construction sector. Notably, a 10pct sales tax on FATA/PATA is expected to bring 50,000-60,000 tons per month back into the formal long steel market, reversing previous dumping trends in Punjab and KPK. Combined with rising transportation costs in those regions, this tax measure is likely to improve competitiveness for local producers.
Other budget measures seen as positive include the removal of Federal Excise Duty (FED) on property transactions, expected to boost construction activity, and lower duties on steel scrap: Customs duty has been reduced from 5pct to 4pct, while Additional Customs Duty (ACD) has been eliminated, cutting total duty by 3pct and improving margins.
Meanwhile, Mughal’s coal-fired energy project is expected to be operational by the end of Q1 FY26, increasing total installed power capacity to 160 MW and reducing energy costs. The company also anticipates gains from lower finance costs amid declining interest rates.
With an annual capacity of 1 mln tons, Mughal Steel manufactures billets, rebars, and structural sections, along with copper ingots primarily exported to China.