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Pakistan's steel industry is in trouble due to increase in electricity charges

Pakistan Steel Melters Association (PSMA) has expressed serious concerns over the recent increase in electricity rates, in addition to the fee adjustment of 4.56 Rupees per unit attributed to the Fuel Adjustment Surcharge in December 2023. The association noted that this situation has further exacerbated the pressure on the steel sector.

Pakistan's steel industry is in trouble due to increase in electricity charges

The Melting Industry, comprising over 200 registered steel melters affiliated with PSMA and heavily reliant on electricity as its primary raw material, has become one of Pakistan's largest electricity-consuming industries.

According to a spokesperson for the association, the significant increase in electricity prices poses a major challenge for the steel melting sector. It has been stated that many furnaces are considering closure in the near future to meet their monthly electricity payments, putting their operations at risk.

Industry representatives highlighted a crucial issue, emphasizing the impossibility of adding Fuel Adjustment Charges to costs after the sale of products, which would result in significant losses for the sector.

In a bid to achieve mutual benefit, PSMA has proposed timely invoicing of adjustment charges without significant delays and their inclusion in product pricing.

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