ISLAMABAD: The Board of Investment (BOI) has called for immediate action against the production and sale of substandard steel, urging the Ministry of Science and Technology (MoST) and the Pakistan Standards and Quality Control Authority (PSQCA) to take decisive steps to uphold safety and quality standards in the steel sector.
This directive follows alarm raised by the Pakistan Association of Large Steel Producers (PALSP) about the rampant availability of non-compliant steel products, which not only endanger public safety but also tarnish Pakistan’s industrial reputation and deter foreign investment.
In an official communication dated December 5, 2024, the BOI stressed that unchecked substandard steel threatens the country’s ambitions of becoming a major steel-exporting nation. The memorandum stems from a high-level meeting on November 22, chaired by the Federal Minister for Investment, where actionable strategies were discussed to address these issues comprehensively.
PALSP Rings Alarm Bells
PALSP, representing the country’s largest steel producers, had earlier shared its concerns in a detailed letter to BOI. The association highlighted regulatory lapses despite PSQCA standards being in place for over 20 years. These lapses, it warned, have allowed non-compliant steel to dominate markets, posing severe safety risks, particularly in construction.
To tackle the crisis, PALSP proposed several measures, including:
- Rationalizing marking fees to incentivize compliance.
- Suspending operations of manufacturers producing substandard steel.
- Updating PSQCA standards to address inferior materials, such as “Bala.”
PALSP also emphasized the need for a qualified and experienced full-time Director General at PSQCA to streamline enforcement and quality assurance. Furthermore, it urged the government to ensure that only PSQCA-compliant materials are used in construction projects sanctioned by building control authorities.
BOI’s Call to Action
The BOI, taking a proactive stance, has directed MoST and PSQCA to submit a comprehensive report by December 9, outlining progress on compliance and enforcement. PALSP has bolstered its case with two presentations detailing the economic and safety repercussions of substandard steel, alongside actionable recommendations.
BOI’s initiative underscores its commitment to safeguarding public safety and fostering industrial development. A BOI official remarked, “Strict enforcement of quality standards is not just a regulatory necessity but a cornerstone for attracting foreign investment and achieving sustainable growth in Pakistan’s steel industry.”
