Karachi, January 31, 2025 – The Federal Board of Revenue (FBR) has announced an extension of regulatory duty on steel product imports through a newly issued notification. The FBR released SRO 78(I)/2025 on January 30, 2025, amending SRO 928(I)/2025 dated June 30, 2024, to ensure continued protection for the local steel industry.
This decision follows recommendations from the Tariff Policy Board (TPB) to sustain support for domestic steel manufacturers. According to reports, the 10% regulatory duty on flat steel products, originally imposed under the Finance Act 2024, will remain in effect until March 31, 2025. From April 1, 2025, this duty will be revised to 5%. Initially set to expire on December 31, 2024, the extension aligns with the National Tariff Policy 2019-24, which mandates all tariff-related proposals undergo review by the Tariff Policy Centre before Cabinet or Parliamentary approval.
In response to industry appeals for regulatory support, the TPB convened its 61st meeting on December 26, 2024. Following discussions, the Board recommended extending regulatory duties on 36 tariff lines of flat steel products. It further stated that duty rates would return to their original levels of 0% and 5% from April 1, 2025.
The Ministry of Commerce, in its summary to the Economic Coordination Committee (ECC), highlighted the federal government’s authority under Sub-Section 3 of Section 18 of the Customs Act, 1969, to impose regulatory duties. Based on TPB’s recommendations, the Ministry proposed an extension of duties on specific iron and steel flat products.
According to official documents, International Steel Limited has requested an additional extension of regulatory duties on various flat steel products until June 30, 2025. The company also proposed imposing a 10% duty on Galvalume steel coils and sheets to prevent circumvention of anti-dumping duties. However, the TPB’s prior recommendation in May 2024 had capped duty changes to a sunset clause of December 31, 2024.
During TPB discussions, the Joint Secretary (Tariff Policy) noted that current tariff structures include customs duties (11%-20%), additional duties (2%-6%), regulatory duties (5%-10%), and anti-dumping duties (5.36%-40.47%). While flat steel product imports increased by 4% in value from July to November 2024, Galvalume steel imports declined by 13% in value and 8% in quantity, contradicting claims of a surge.
The Joint Secretary further cautioned that maintaining or increasing regulatory duties could negatively impact downstream industries. Additionally, he reiterated Pakistan’s commitment under the IMF program to reduce trade-weighted average tariffs rather than increase them. The FBR continues to assess these policies to strike a balance between supporting local industries and meeting international obligations.
