Islamabad: The Board of Investment (BOI) has asked the Ministry of Science and Technology (MoST) and Pakistan Standards and Quality Control Authority (PSQCA) to take immediate measures to curb the production and sale of substandard steel in the country. This directive is in response to concerns raised by the Pakistan Association of Large Steel Producers (PALSP) regarding the widespread availability of non-compliant steel products.
In its official letter dated December 5, 2024, the Board of Investment emphasized that substandard steel not only poses a significant risk to public safety, but also hampers Pakistan’s industrial development, foreign investment potential, and its aspirations to become a steel exporting country.
The memorandum referred to the discussions of a high-level meeting held on November 22, 2024, chaired by the Federal Minister of Investment. During the meeting, key decisions included engaging PALSP for feedback and engaging the Ministry of Science and Technology and PSQCA in devising workable solutions.
Earlier, PALSP, in a detailed letter to the BOI, highlighted long-standing implementation challenges in steel production standards. Although PSQCA regulations have been in place for more than two decades, enforcement is still inadequate, allowing non-compliant steel to spread into the market. PALSP proposed various measures to strengthen enforcement, such as rationalizing labeling fees to encourage compliance, suspending operations of non-compliant manufacturers, and updating PSQCA standards for processing substandard materials such as “Bala”.
PALSP also recommended the appointment of a full-time Director General of PSQCA with relevant qualifications and experience in standardization and quality and to ensure that only PSQCA compliant materials are used in construction projects approved by construction control authorities. The association also stressed the need to distinguish between quality-committed and non-quality steel producers during consultations to avoid delays in decision-making.
In response to PALSP’s concerns, the BOI directed the Ministry of Science and Technology and PSQCA to submit a report with comprehensive comments on compliance and progress by December 9, 2024. PALSP also made two detailed presentations to the BOI, outlining the economic and safety risks posed by substandard steel and proposing actionable solutions.
The BOI’s proactive approach underscores its commitment to ensuring public safety and promoting industrial growth. As Pakistan aims to enhance its steel production capabilities and attract foreign investment, strict implementation of quality standards will be pivotal in achieving sustainable progress.