Growth in Pakistan's auto sector creates steel shortage

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.