Pakistan’s steel industry has urged the Federal Board of Revenue (FBR) to take immediate action to address the inflow of duty-free Chinese steel imports entering the country via the Customs Dry Port Sost, warning that these imports are undermining domestic producers and distorting market competition, according to media reports.
It is noted that significant volumes of Chinese steel are being cleared through the Sost border crossing without upfront tax payments, allowing imported material to enter the domestic market at prices local mills cannot match.
Pakistani steelmakers have called on the FBR to require advance tax payments, pay orders or bank guarantees at the point of clearance at Sost, ensuring that government revenues are protected and that imported material does not enter the market at unfairly low prices. Steelmakers have also urged the government to consider safeguard or remedial trade measures if import volumes continue to rise, noting that prolonged pressure from low-priced imports could force further production cuts, layoffs or plant closures across the domestic steel sector.
Industry stakeholders warned that unless corrective steps are taken promptly, the impact of duty-free imports cleared via the Customs Dry Port Sost could intensify in early 2026, further weakening Pakistan’s steel industry and reducing fiscal revenues.
