Faiza Tehseen

Pakistan spends large amounts of foreign exchange on import of steel raw material like scrap and ingots to produce steel products locally despite the fact that the country has vast reserves of iron ore, which remain to be tapped for want of modern technology and absence of processing units. The establishment of processing units can really boost Pakistan’s construction sector as prices of iron/steel will go down considerably. “Pakistan imports more than 70% of steel scrap to feed the manufacturing units, and if the local deposits of iron ore are tapped and processed, the import bill will be cut to a great extent, bringing stability to the prices of steel and boosting the construction sector,” shared Faisal Iqbal Khokhar, sales and marketing manager of ZAK Steels, a manufacturing unit in Islamabad, while talking to WealthPK.

He said import of iron/steel raw materials in different forms such as scrap and ingots, was depriving Pakistan of a great deal of foreign exchange. “Setting up local iron ore processing units will lower costs, create job opportunities and add up to overall GDP.” He said Pakistan had only one steel unit – Pakistan Steel Mills Corporation Private Limited – but it had been dysfunctional for a long time. “The government should not only revive the steel mills but also set up more such units in the country to benefit the construction sector.” Iqbal Khokhar stressed the need to attract foreign investors in setting up steel manufacturing units. He pointed out that China could help Pakistan with transfer of modern technology in setting up the manufacturing units, training of manpower and grooming industry.

Talking to WealthPK about the importance of establishing iron ore processing units in Pakistan, Muhammad Yaqub Shah, a member of the Sectoral Council for Marble, Granite and Minerals, Ministry of Finance, said the known iron ore deposits in Pakistan were Nokundi, Dalbandin, Dilband and Daman Nisar in Balochistan and Kala Bagh and Pezo in Khyber Pakhtunkhwa. “The nature of iron ore deposits is also different at different places as some are in the sulfide zone and some in the oxide zone, which need different processing methods.” He said it was prudent to set up ore processing units close to the deposits as transporting iron ore to far-off areas was costly. “The most feasible thing to get benefit from all deposits is establishing small iron ore processing units/steel mills near each deposit,” stressed Muhammad Yaqub.

Credit : Independent News Pakistan-WealthPk