Import

Pakistan’s Steel Industry and Scrap Metal Imports (2025 Update)

Pakistan relies on three major ports for scrap imports: Karachi Port, Muhammad Bin Qasim Port, and Gwadar Port. Karachi and Qasim remain the busiest for ferrous scrap metal imports.

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Steel Production Capacity in 2025

• Installed capacity: 5.5 million metric tons
• Annual production: Around 6.3 million metric tons

Pakistan uses electric arc furnaces (EAFs), melting imported scrap metal instead of iron ore, to make new steel. This method is cost-effective and eco-friendly, and widely used in countries like Turkey, India, and Vietnam.

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Scrap Metal Imports: 2025 Snapshot

• January 2025: 213,818 tons of scrap imported
  → 4.99% less than January 2024
  → 6.3% more than December 2024
• October 2024: 228,217 tons imported
  → 15.6% increase month-over-month

Key suppliers include the UK, UAE, and other European nations.

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Common Scrap Grades Imported

• Heavy Melting Scrap (HMS)
• Shredded Steel Scrap
• Plate and Structural Scrap (P&S)
• Re-rolling Scrap
• HR Trimming Scrap (Bobbin Scrap) – often shipped by Malik & Sons Global Enterprises
• Cast Iron Scrap

Non-ferrous scrap (compressors, motors, copper, aluminum) is also imported in smaller volumes.

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Regulatory Changes in 2025

Pakistan’s Federal Board of Revenue (FBR) canceled the Export Facilitation Scheme (EFS) for scrap importers:

• Imports must be used within 9 months
• Requires bank guarantees and annual audits
• Aims to reduce tax evasion and improve transparency

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Growing Demand from Infrastructure

Pakistan’s demand for steel remains high due to:

• Government spending on infrastructure
• Growth in housing, roads, energy, and urban construction
• Expansion in automotive and industrial sectors

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The Road Ahead

Pakistan is slowly moving toward a "scrap cycle" — where aging buildings and infrastructure will generate domestic scrap.

However, in 2025, most scrap still needs to be imported. Developing local recycling capacity will be crucial in the next decade.