Steel makers urge SBP to open LCs

Steel producers have urged the State Bank of Pakistan (SBP) to open letters of credit (LCs) for import of their essential raw materials, saying the industry was on the brink of collapse on raw material shortages, increase in international scarp prices, and devaluation of the local currency.

"We are facing a dire situation, and we need the support of the State Bank to help us secure the imports we need to keep our factories running," said Wajid Bukhari, Secretary General of Pakistan Association of Large Steel Producers (PALSP). Lack of raw materials and the industry’s trade finance limits have caused severe production disruptions, putting the industry in jeopardy, according to PALSP.