Govt Urged To Announce Incentives For Accelerating Economic Activities

ISLAMABAD, Dec 8 (UrduPoint / Pakistan Point News - 8th Dec, 2022 ) :Coordinator to Federal Tax Ombudsman Meher Kashif Younis urged the government for announcing a package of incentives to help accelerate the pace of economic activities involving all sectors of development and adopt a set of tangible measures to strengthen the national economy.

Talking to a delegation of industrialists and traders led by Mian Faryad Ahmad Raza, he said that sound and stable economy were panacea of all problems confronting the nation in the wake of flood wreckage, said a press release issued here Thursday.

He said that local steel industry has so far witnessed a contraction of around 60 percent due to the devastation of floods, adding that many plants stopped production due to the high cost of scrap laced with other multiple economic challenges.

While, the global scrap prices have also swelled by about 30 percent to $710 per ton as a result of Russia-Ukraine conflict, he said adding that the increase in energy costs also hampered margins of steel companies.

Due to the flash floods, most steel companies saw around 40-50 percent decline in volume of production, he said adding that weaker demand also put pressure on the pricing power of steel makers.

He said that the decline in demand seen is due to the overall slowdown in construction activity following high interest rates and inflation, adding that the soaring costs of inputs were another reason of reducing demand.

He said that revival of local industry would help to tackle with unemployment challenges, besides generating revenues and fulfilling local requirements of steel.