In Islamabad, as electricity prices continue to increase for both industrial and domestic consumers, it's causing significant concern among large industries.
One of the most affected sectors is the country's vast steel industry. On a recent Monday, a representative association from the steel sector issued a grave warning about an impending surge in steel rebar prices, largely driven by the soaring energy costs.
This price hike could have severe repercussions for Pakistan's construction industry and may negatively impact factory workers and laborers, potentially leading to job losses.
According to a letter sent by the Pakistan Association of Large Steel Producers (PALSP) to relevant government ministries, the steel sector, which is a crucial component of Pakistan's economic infrastructure, heavily relies on electricity as a primary input.
In fact, electricity expenses account for over 50% of their production costs. The continuously rising electricity prices have already compelled several steel units to cease their operations, leaving the remaining ones functioning at a fraction of their capacity.
PALSP has consistently urged the government to provide reduced-rate electricity to the steel industry to promote maximum capacity utilization, rather than incurring payments to independent power producers (IPPs) for unused electricity.