— PM directs FBR to take immediate measures to curb smuggling
GHULAM ABBAS AND SHAHZAD PARACHA
ISLAMABAD: In response to an urgent appeal by Pakistan Association of Large Steel Producers (PALSP), Prime Minister Shahbaz Sharif has directed the Federal Board of Revenue (FBR) to take immediate action against the rampant smuggling of steel from Iran and Afghanistan. The Customs authorities have also been instructed to curb the illegal trade of Radial Tyres to safeguard the domestic industry.
The Customs Intelligence and Investigation Wing has issued a letter to its major offices across the country, urging them to intensify efforts in combating the smuggling of steel from neighboring countries. The unlawful import of steel billets and rebars has been identified as a serious threat to the survival of the local steel industry in Pakistan.
PALSP highlighted in their letter to the Prime Minister that the smuggling of steel from Iran and Afghanistan has been persisting unchecked, leading to adverse consequences for the domestic steel sector. Pakistan’s steel industry, which emerged as the sixth-largest exporting sector (ferrous & non-ferrous combined) with exports of one billion USD, is facing a significant decline in its exporting ability due to the menace of smuggling.
The influx of (non-tax paid) Iranian Billets has been observed in major cities such as Quetta, Karachi, and Lahore, with large parts of Balochistan being flooded with smuggled steel billets and rebars. This illicit activity has resulted in the closure of local steel industries in affected areas, leading to a loss of numerous jobs and a substantial decline in government revenue.
In a bid to counter the alarming situation, the Customs offices in Karachi, Hyderabad, Quetta, Gwadar, Multan, Lahore, Rawalpindi, and Peshawar have been directed to remain vigilant and take immediate action against steel smuggling. Additionally, there have been reports of Radial Tyres of buses and trucks being smuggled, prompting the Customs authorities to extend their efforts to thwart this unlawful trade.
The large steel producers’ association has urgently appealed to the government to address the escalating issue by implementing strict measures against smuggling activities. The situation demands immediate action to protect the domestic steel industry from further deterioration.
The government has assured the steel industry stakeholders of their commitment to curbing smuggling and safeguarding the interests of local businesses. Authorities are now working on devising effective strategies to prevent the illicit cross-border trade of steel and tyres.
The industry leaders believe that the Prime Minister’s directive to the FBR and Customs marks a significant step towards protecting Pakistan’s domestic industry and ensuring its sustainable growth. As the government takes concrete measures to clamp down on smuggling, industry leaders are hopeful that the menace will be effectively tackled, providing a much-needed boost to the nation’s economy.
