Islamabad, November 3, 2025 – The Competition Commission of Pakistan (CCP) has recommended the formation of a dedicated Steel Ministry to oversee and strengthen the country’s steel industry, citing the absence of a comprehensive national policy and institutional coordination.
The recommendation was made in CCP’s latest report, titled “Competition Assessment Study of the Steel Sector in Pakistan,” which identifies major structural and regulatory challenges facing the industry. The study draws comparisons with successful models in China and India, where government-backed initiatives have significantly bolstered competitiveness and innovation.
According to the CCP, Pakistan’s manufacturing sector contributes 71% of total exports and employs about 15% of the workforce, with the steel industry serving as a critical component. Large-Scale Manufacturing (LSM) accounts for 69% of manufacturing output and 8.2% of GDP, while local steel production stood at 8.4 million metric tons in FY24. However, per capita steel consumption remains low at 47 kilograms, reflecting weak industrial expansion and slow infrastructure development.
The report highlights the heavy reliance on imported raw materials, energy shortages, and lack of modern infrastructure. It notes that Pakistan Steel Mills (PSM), once a major state asset with a capacity of 1.1 million tons per year, has been non-operational since 2015, burdened by financial losses of over PKR 400 billion.
The CCP also pointed to issues such as substandard steel production, tax distortions in ex-FATA/PATA regions, and policy inconsistency caused by frequent changes in SROs. It estimated annual revenue losses of PKR 40 billion due to tax-free steel entering settled areas.
To address these issues, the CCP urged the government to develop a national steel policy, expand the Ease of Doing Business Committee to include industry experts, and promote green technologies and local resource utilization.
The report further emphasized the need to formalize undocumented producers, strengthen regulatory enforcement, and encourage R&D investment to ensure sustainable and competitive growth in Pakistan’s steel sector.