ISLAMABAD: Pakistan’s steel industry — long regarded as a strategic backbone of the national economy — is grappling with a severe downturn, raising concerns over revenue losses and employment risks.
Media report cited data compiled by the Pakistan Association of Large Steel Producers revealing that the country’s long steel sector has been pushed towards crisis due to a combination of shrinking demand, heavy taxation, and soaring energy costs.
The industry, which generates approximately Rs150 billion in annual revenue, provides direct employment to around 200,000 people, while supporting hundreds of thousands of additional jobs indirectly. Analysts say the sector plays a pivotal role in sustaining broader economic activity.
Experts also highlight the industry’s strong “multiplier effect,” noting that every dollar spent on steel production generates an additional $2.50 in economic value. The sector is closely linked to nearly 45 downstream industries, ranging from construction to manufacturing, making it a key driver of industrial growth.
Despite its economic significance and potential, the steel sector is currently operating far below its full capacity, reflecting the scale of challenges confronting the industry.
