KARACHI – Pakistan’s industrial engines are roaring back as iron and steel scrap imports hit four-year high in what is said to be a major shift in government’s import policy and a potential revival in the country’s struggling steel sector.
Pakistan imported 359,759 tonnes of iron and steel scrap in September 2025, a massive 30% jump year-on-year and 36% surge compared to August. This marks the strongest recovery since 2021, as import curbs ease and industrial demand cautiously rebounds.
During the first quarter of FY2026, total scrap imports climbed 12% to nearly 936,000 tonnes, although the import bill slipped 2% to $486 million, thanks to a 12% drop in global scrap prices averaging $524 per tonne.
State Bank relaxed import restrictions earlier this fiscal year, a move that supercharged trade volumes but also pushed the trade deficit past $9 billion in just three months. Meanwhile, foreign investors repatriated 86% more profits than last year, highlighting both the economy’s opening and its growing vulnerabilities.
After 2 years of crippling foreign exchange shortages and import bans, Pakistan’s steel sector is showing its first real signs of recovery. Still, demand remains muted as sluggish growth drags on.
Pakistan’s per capita steel consumption, now just 36 kg per person, is among the lowest in the world, far behind the global average of 222 kg. Yet optimism is returning, with scrap inflows expected to boost long steel production, fueling construction and manufacturing in the coming months.
Pakistan Credit Rating Agency (PACRA) linked the rebound to broader global trends, projecting a 3.2% rise in world GDP and 1.7% growth in steel demand in 2024.
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