Growth in Pakistan’s auto sector creates steel shortage
Pakistan's
automotive sector, which is currently producing more than 100'000 cars annually, is expected to grow to 500'000 units with in the next 5 years.
Currently, the
automotive market has a growth rate of around 32%. The increase in demand is attributed to the availability of excess liquidity.
The growth in
automotive sector indicates a positive sign for the
Pakistan's economy as the sector contributes to the GDP (Gross Domestic Product), employment, income and
investments.
On the other hand, the
production level can create a steel shortage in the country. Therefore,
Pakistan can need to import the major amount of steel abroad.