Pakistan’s Steel Industry Faces Severe Downturn Despite Rs150 Billion Revenue, Jobs at Risk

Islamabad, April 29, 2026 — Pakistan’s long steel industry, long regarded as the backbone of the national economy, is facing a severe downturn, according to data compiled by the Pakistan Association of Large Steel Producers.The sector is under pressure from falling demand, heavy taxation, and soaring energy costs. The crisis threatens an industry that generates around Rs 150 billion in annual revenue, directly employs 200,000 people, and supports hundreds of thousands of indirect jobs.Analysts highlight the sector’s strong “multiplier effect,” noting that every $1 spent on steel creates $2.50 in additional economic value. The industry also drives activity across 45 allied sectors, from construction to manufacturing.Despite its strategic importance to economic growth, the steel industry is operating well below capacity. Stakeholders have urged the government to review tax policies and energy tariffs to prevent further decline and protect livelihoods linked to the sector.