Pakistan’s steel industry plays an integral role in the country’s economy; its production accounts for over two percent of the GDP, and its exports are also vital to the nation’s growth. This guide covers how the industry came to be, where it stands today, and how it might grow in the future so that you can better understand this complex but important topic.
Pakistan’s steel industry has been growing in the last decade with steel being a crucial part of development and growth. As an international business school in Pakistan, we’re more than happy to talk about the Pakistan Steel Industry, its current status, and what it means for Pakistan’s economy as well as the world at large. Here are some interesting facts about Pakistan’s Steel Industry and its importance to the country’s economy that you should know about…
What is the steel industry?
Steel is a metal alloy made of iron and carbon. It is widely used in construction, manufacturing, and other industries. The steel industry refers to the production of steel or products made from steel. Pakistan’s steel industry is an integral part of its economy as it contributes 4% to GDP and employs more than 100,000 workers in over 400 industrial units throughout the country.
How important is the steel industry to Pakistan?
Steel is an important industry in Pakistan. In 2017, it was responsible for approximately 3% of Pakistan’s GDP and employed 1.5 million people.
Pakistan is the world’s eighth-largest producer of steel and its exports rose by 30% between 2005-2017.
Steel production takes up a significant amount of energy – around one-third of total electricity consumption in Pakistan.
What are the main products of the steel industry in Pakistan?
Pakistan’s steel industry is mostly based on its production of raw materials, such as coal and iron ore. It imports most of its finished steel products from other countries, such as China. The country’s economy relies heavily on this industry because it provides employment for many Pakistanis. In addition, its exports make up a significant portion of Pakistan’s total GDP.
What are the major steel producers in Pakistan?
Pakistan has about 4 million tons of steel production capacity, which is a very small share of the world’s total steel production capacity. The major producers are Heavy Industries Taxila (HIT), Pakistan Steel Mills Limited (PSM), and SIDF. PSM is located in Karachi with an installed capacity of 3 million tons and HIT is located in Taxila with an installed capacity of 535 thousand tons.
Pakistan exports 90% of its production to Saudi Arabia, Iran, UAE, Yemen, and Oman.
While Pakistan produces 4 million tons of steel annually it consumes around 10 million tons per year. This means that while the country exports more than it imports it still needs to import around 6-7 million tons per year just to meet domestic demand.
What are the benefits of the steel industry to the Pakistani economy?
In Pakistan, steel is one of the most important industries. It is a major contributor to Pakistan’s GDP and has a large number of employment opportunities. The steel industry also has a major impact on other industries such as aluminum, cement, and transportation. The benefits that come from this industry include an increase in revenue for the country; the development of infrastructure for things like roads, bridges, and airports; and better living conditions due to its contribution to building homes.
