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The Ripple Effect: Impact of Pakistan's Steel Sector on Associated Trades

At the heart of Pakistan's industrial framework lies its Steel Sector, a foundational pillar that significantly boosts the nation's GDP and supports a vast employment network. This sector is a blend of robust integrated steel mills and nimble re-rolling mills, catering to both the domestic and international markets with a diverse array of steel products. The continual surge in demand across various domains underscores the pivotal role that the steel industry plays in fueling Pakistan's economic propulsion. Its critical contribution spans a multitude of applications, underpinning the nation's infrastructural expansion and fulfilling the escalating needs of an advancing society. As the steel sector strides forward, it embodies the dynamic interaction of innovation and tradition, shaping the trajectory of Pakistan's industrial and economic landscapes.

The Role of Steel in Construction and Infrastructure

Steel's indispensability in the construction and infrastructure realm significantly underscores its pivotal role. This material's strength, durability, and versatility make it a cornerstone in erecting structures that stand the test of time. In Pakistan, the steel sector's health directly correlates with the capability to embark on and complete critical infrastructure projects including the development of highways, bridges, and urban buildings. The reliance on steel for these ventures not only showcases its integral function but also its influence on the pace and quality of construction work. The direct relationship between the steel industry's output and the construction sector's efficacy highlights a symbiotic dependency, where advancements in steel production techniques and quality directly enhance the capabilities of construction professionals to meet modern engineering demands. As urbanization accelerates and the push for sustainable infrastructure intensifies, the demand for innovative and environmentally friendly steel solutions becomes more pronounced, driving further collaboration and growth between these interconnected sectors. This dynamic interplay not only fuels economic growth but also paves the way for a resilient and future-ready infrastructural landscape in Pakistan.

Challenges and Opportunities

Navigating through the complexities of the steel industry, Pakistan faces its share of hurdles, including volatility in global steel prices, escalating energy expenditures, and stringent regulatory landscapes. These elements can unpredictably influence the operational costs and efficiency of steel production, posing significant challenges to maintaining a steady growth trajectory. Despite these obstacles, the horizon brims with potential for transformative change. The sector is poised to harness technological advancements and sustainable methodologies that promise to redefine production processes and product quality. Embracing innovation and fostering partnerships for research and development can propel the industry beyond traditional barriers, optimizing resource use and minimizing environmental impact. This proactive approach not only addresses the pressing challenges but also opens up a realm of opportunities for the steel sector to bolster its influence on the economy and affirm its role as a keystone in Pakistan’s industrial and infrastructural development. The pathway forward demands a strategic blend of resilience, ingenuity, and commitment to sustainability, setting the stage for a future where the steel industry continues to be a bedrock of growth and prosperity for the nation.

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The Role Of Steel In Modern Infrastructures

Steel stands as an indispensable pillar of modern infrastructure, strengthening the buildings and bridges that define our urban landscapes. It stands not only as a material of construction but as a symbol of endurance, innovation, and progress. This article will help you understand the role of steel and its significance in the contemporary world and we will also explore what the future predictions of steel in modern infrastructures are.

The Role & Importance of Steel in Modern Infrastructures;

Structural and Infrastructure Development

Structural section makes up 25% of the steel used in buildings, and provides strong and rigid foundations for structures. On the other hand, reinforcing bars, which make up 44% of the steel used in structures, improving the tensile strength and stiffness to concrete. Furthermore, 60% of the steel is used as reinforcing bars in transportation networks and constructing buildings while the remainder comprises sections, plates, and rail tracks, and over 50% of the steel is utilized for underground pipelines, facilitating water distribution for residential use and gas transportation.Top of FormTop of Form

Top of FormTop of FormNow, let’s take a look at the significance of steel in modern infrastructure. It offers strength, durability, and versatility in design, in addition to being a sustainable choice and cost-efficient. Here are key points highlighting the significance of steel in infrastructure development.

Strength, Durability, and Versatility

One of the primary factors attributing to steel's association with modern infrastructure is its remarkable strength, durability, and versatility in design. It serves as the backbone of structures capable of withstanding seismic tremors, hurricane winds, and heavy snow loads. When combined with concrete, steel reinforcement forms an unconquerable shield for prolonging the lifespan of buildings and bridges.

From a durability point of view, the steel service lives averaging between 75 to 100 years, steel bridges stand as enduring testaments to the material's longevity, surpassing alternative materials like timber or concrete. When it comes to steel, the higher the quality, the longer it lasts. Moreover, steel-framed buildings provide earthquake resistance up to five times higher than that of concrete structures.

In the realm of design versatility, steel's versatility knows no bounds. Leveraging cutting-edge technologies such as computer-aided design (CAD) and Building Information Modeling (BIM), architects and engineers harness the material's inherent flexibility to craft structures that push the boundaries of innovation.

Sustainability and Cost Efficiency

In an era marked by increasing environmental consciousness, steel emerges as an ideal of sustainability. With its ability to be recycled indefinitely without compromising its structural integrity, steel embodies the principles of a circular economy, minimizing waste and conserving resources.

In addition, the material's longer lifespan results in lower maintenance and replacement expenses over time, offsetting initial costs and making it an economically sound option over time.

Steel stands as a foundation of modern infrastructure development due to its strength, durability, sustainability, and cost-effectiveness. Its role in creating resilient and visually appealing structures that withstand the test of time is pivotal for the progress and prosperity of societies worldwide. Lastly, let’s explore the crucial role of steel in shaping the future of the construction route.Top of Form

Future Steel Outlook

We expect that the profitability of steel producers will experience a slight increase or maintain a moderate level, supported by growing demand, a modest uptick in prices in China, India, and Europe, as well as declining raw material costs. Top of Form

Manufacturing is likely to get better first, but steel demand might not grow much because of high interest rates. Next year, most places will see faster growth, but China might not grow as quickly.

As outlined in its latest Short-Range Outlook (SRO) report, the World Steel Association (World Steel) projects a 1.7% increase in global steel demand for 2024.

By the year 2030, there will be a mandate for all new constructions, infrastructure projects, and renovations to possess a minimum of 40% lower embodied carbon emissions, accompanied by substantial upfront reductions in carbon emissions. Additionally, all newly constructed buildings will operate with net zero operational carbon emissions.

By the year 2050, it is envisioned that newly constructed buildings, infrastructure developments, and renovated structures will achieve net zero embodied carbon emissions. Furthermore, all buildings, inclusive of existing structures, will be required to operate with net zero operational carbon emissions.

Conclusion

Steel stands as a foundation of modern infrastructure development due to its strength, durability, sustainability, and cost-effectiveness. Its role in creating resilience against environmental challenges and its ability to endure the test of time make it a vital element in the construction of the progress and prosperity of societies worldwide. As we continue to innovate and evolve, steel will undoubtedly remain at the forefront of infrastructure development, laying the foundation for a more resilient and sustainable future for societies worldwide.

References:

https://utilitiesone.com/steel-construction-ushering-in-a-new-era-of-infrastructure

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Steel Industry Contribution to Pakistan’s GDP

Steel stands out as one of the most essential materials across various sectors of the economy, including construction, transportation, manufacturing, and energy. Its pivotal role in the economic development of Pakistan cannot be overstated. The steel industry significantly contributes to the country's GDP and exerts a profound impact on diverse sectors. Over the past five years, this sector has demonstrated remarkable growth, with statistics underscoring its positive influence on the national exchequer. It also serves as a significant source of employment, income, and tax revenues. In this blog post, we will delve into how the steel industry in Pakistan is bolstering the nation's GDP and enriching the national exchequer.

According to the Pakistan Credit Rating Agency (PACRA), the steel industry holds a share of approximately 5.4% in the large-scale manufacturing (LSM) sector, which itself contributes around 9.5% to the GDP. With more than 100,000 workers employed across over 400 industrial units nationwide, the steel industry plays a crucial role in job creation. In 2019, the industry boasted a production capacity of 3.3 million tons, representing 0.18 percent of global production. Key players in the organized sector include FF Steel, Amreli, Agha, Mughal, Naveena, and Ittefaq Steels.

Moreover, the steel industry serves as a significant revenue source for the national exchequer through various taxes, royalties, and duties. PACRA reports that the steel sector contributes approximately 9.1% to the GDP, with an estimated year-on-year growth of 10.5% in FY22. Around 30% of the corporate tax is paid by the steel sector, collected from 30 public listed companies directly or indirectly associated with the industry. Additionally, the sector actively supported COVID-19 relief efforts, awareness campaigns, and vaccination drives in Pakistan, allocating roughly Rs 22,000 crore to corporate social responsibility (CSR) projects in FY 2021.

Expectations for the steel industry's continued growth remain high, driven by increasing demand for steel products both domestically and internationally. The government has also implemented several initiatives to bolster the sector, including corporate tax rate reductions, incentives for domestic production, and the introduction of the Development of Enterprise and Service Hubs (DESH) Bill aimed at revamping existing Special Economic Zones.

In conclusion, as sturdy as the steel it produces, Pakistan's steel industry stands tall as a cornerstone of economic prosperity. With its foundations deeply rooted in construction, transportation, manufacturing, and energy, this industry forges a path of growth, bolstering the nation's GDP and enriching the national exchequer. From towering skyscrapers to robust infrastructure, steel shapes the landscape of progress. As we look ahead, the future gleams bright with promise, as the steel industry continues to forge ahead, driving innovation, prosperity, and a stronger, more resilient Pakistan.

(1) STEEL SECTOR - PACRA. https://www.pacra.com/sector_research/Steel%20Sector%20Post%20Review%20Update_1601130113.pdf.

(2) LSM - Pakistan Steel Industry Outlook - PIDE - Pakistan's premier .... https://pide.org.pk/research/lsm-pakistan-steel-industry-outlook/.

(3) undefined. https://www.pacra.com/sector_research/PACRA%20Research%20-%20Steel%20-%20Sep.

(4) Pakistan - GDP distribution across economic sectors 2022 - Statista. https://www.statista.com/statistics/383256/pakistan-gdp-distribution-across-economic-sectors/.

(5) mwpbnp.pk. https://bing.com/search?q=Pakistan+steel+industry+GDP+contribution.

(6) mwpbnp.pk. https://mwpbnp.pk/blog6.html.

(7) Sector Study - PACRA. https://www.pacra.com/sector_research/PACRA%20Research%20-%20Steel%20-%20Sep'21_1630576235.pdf.

(8) Sector Study - PACRA. https://www.pacra.com/sector_research/PACRA%20Research%20-%20Steel%20-%20Sep'22_1662124643.pdf.

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“The Game-Changing Tech Reshaping Construction Industry”

As technology advances around the world, the National University of Sciences and Technology (NUST) one of the institutes in Pakistan considers the need of keeping up with technological growth. The state is currently experiencing difficulties in a variety of areas as a result of the PKR depreciation against the US dollar. The construction industry, Pakistan's second-largest employer and a substantial contributor to GDP is also one of the businesses affected by rising material prices (Pakistan Construction Industry Report 2022: Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Size, Trends and Forecasts, 2017-2021 & 2022-2026 - ResearchAndMarkets.com, 2022).

Additionally, there is a 10 million housing shortfall, which is anticipated to grow to 13 million by 2025, and 3D concrete printing technology is a potential answer to this catastrophe. Further, the report notes that Pakistan is a developing nation with an expected 92% growth in the construction sector, which accounts for 2.53% of the nation's total GDP. As a result, there is increased pressure on the sector to boost productivity due to the country's growing population (Desk, 2023).

The researchers from (NUST) developed the country's first 3D concrete printer, which can alleviate many of the industry's challenges. The development of this particular technology is to address the challenges that traditional construction methods face such as low productivity, high costs, and construction waste (Staff, 2023).

The auspicious 3D concrete printing technology is a possible solution as it will reduce construction costs by 40% to 50%. One of the positive points of this concrete printer is its low cost, which is due to its availability of materials in the local market. Nonetheless, the difficult part was that it required multidisciplinary knowledge and skills, as well as considerable study while in development, encompassing numerous fields such as civil, mechanical, and electrical engineering, which results in effective solutions (Admin,2023).

The 3D concrete printer results in providing multiple solutions to the construction industry:

Energy efficient.

Design Flexibility.

Reduced labor effort.

Increased Productivity.

Safer construction work.

Topological Optimization.

Highly precise deposition.

Greater research potential.

High-end technology-based jobs.

Promising methodology & output.

Cost-effective mass housing solution.

The balance between beauty, form & function.

Multifunctionality of structural/architectural elements.

According to NUST, 3D concrete printing will use the same ingredients as conventional concrete, but the difference will be in the rheological properties (the behavior of fluids under mechanical loading when subjected to a load) of printed specimens, which will be enhanced by providing extrudability, buildability, pump ability, and interlayer bonding. The functionality of this printing works with the frame of 3-axis movement controlled by servos and gearboxes, a variety of nozzles, continuous intake capacity, screw extrusion, and a digital control system. This can help in printing different architectural and structural shapes of components (Admin,2023).

In the face of numerous challenges, the country is grappling with a myriad of crises, ranging from economic instability to social issues and security concerns. Pakistan possesses an inherent potential to transform its current state by creating innovative solutions that pave the way for progress, in addition, emerge as a nation that overcomes obstacles to the problems it faces. However, among these turbulent times, there is an underlying resilience and determination that gives hope for a brighter future.

References:

Pakistan Construction Industry Report 2022: Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Size, Trends, and Forecasts, 2017-2021 & 2022-2026 - ResearchAndMarkets.com. (2022, October 10). Pakistan Construction Industry Report 2022: Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Size, Trends, and Forecasts, 2017-2021 & 2022-2026 - ResearchAndMarkets.com | Business Wire. Available at: https://www.businesswire.com/news/home/20221010005565/en/Pakistan-Construction-Industry-Report-2022-Commercial-Industrial-Infrastructure-Energy-and-Utilities-Institutional-and-Residential-Market-Size-Trends-and-Forecasts-2017-2021-2022-2026---ResearchAndMarkets.com#:~:text=4%20trillion%20(US%248.5%20billion,between%20January%20and%20April%202022.

Desk, S. W. (2023, March 4). NUST researchers successfully develop Pakistan&rsquo’s first 3D concrete printer. Available at: https://www.samaaenglish.tv/news/40028679

Staff, M. N. (2023, March 4). NUST’s Structural Engineering Dept develops Pakistan’s first 3D Concrete printer. Available at: https://mmnews.tv/nust-develops-pakistans-first-3d-concrete-printer/

Author, G. (2022) Construction Industry of Pakistan – latest trends and opportunities as per PACRA, ProPakistani. Available at: https://propakistani.pk/2022/08/04/construction-industry-of-pakistan-latest-trends-and-opportunities-as-per-pacra/

Admin, (2023) NUST researchers developed Pakistan’s first 3D concrete printer. Available at: https://researchblog.nust.edu.pk/pakistans-first-3d-concrete-printer-developed-by-nust/

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CPEC: The Untapped Potential for the Steel Industry of Pakistan

Have you ever wondered how the China-Pakistan Economic Corridor (CPEC) could change the steel industry? It is evident that CPEC has been a major game changer for the economy of Pakistan and is a key milestone in China’s Belt and Road Initiative. But what are its untapped potentials for the steel industry?

The CPEC has provided access to a large market, simplified trading procedures, and reduced transportation costs. It has improved supply chain efficiency and generated greater opportunities for Pakistan’s Steel Sector. CPEC also provides foreign direct investment, technology transfer, and job creation opportunities in Pakistan.

This article seeks to explore how CPEC can be a game changer for the steel industry, opening the doors to new markets, new customers, and new technologies. We'll look at, how it can help to increase efficiency and productivity across the board, as well as how it can open up new trade channels for Pakistani steel makers.

CPEC & the Steel Industry: An Overview

CPEC offers an unprecedented opportunity for the Pakistan Steel Industry. It could prove to be a game-changer for the country as it unlocks new avenues for economic growth and investment. With CPEC, Pakistan can benefit from modern technology, foreign direct investments in steel-related industries, and improved infrastructure.

Moreover, the second phase of the China-Pakistan Economic Corridor (CPEC) has increased its focus on Special Economic Zones (SEZs). These SEZs are expected to be hubs for steel-related industries and will help stimulate growth in the sector. The SEZ in Faisalabad will become an industrial hub with a focus on light engineering activities such as auto parts manufacturing and electronics appliance assembly (2023, April 13). In addition to these, CPEC also plans to establish nine Special Economic Zones (SEZs) across Pakistan, which will attract more investment and industries that will further increase the demand for steel. According to the Board of Investment (BOI), these SEZs will create about 1.5 million jobs and generate about $10 billion in exports by 2030 (2023, April 13).

One of the main drivers of this growth was CPEC, which created a huge demand for steel for various projects. According to the Ministry of Planning, Development, and Special Initiatives, CPEC has completed 17 projects worth $13 billion as of December 2022, while another 21 projects worth $12 billion are under construction (2023, April 13). These projects include highways, railways, power plants, ports, and Special Economic Zones (SEZs), which require large amounts of steel for their construction and operation.

For instance, the Karachi-Lahore Motorway (KLM), which is a part of CPEC's eastern alignment, is a 1,152 km long six-lane expressway connecting Pakistan's two largest cities. The project cost $6.6 billion and was completed in December 2022 (2023, April 13). The project consumed about 1 million tons of steel during its construction, according to the National Highway Authority (2023, April 13).

Thar Coal Power is a part of CPEC's energy cooperation. The project consists of two coal-fired power plants with a total capacity of 1,320 megawatts (MW), located in Thar Block II in Sindh province. The project cost $2 billion and was inaugurated in March 2023 (2023, April 19). The project used about 400,000 tons of steel for its construction, according to the Sindh Engro Coal Mining Company (2023, April 19).

Another project is the Gwadar Port, which is also a part of CPEC's maritime cooperation. The port is located in the Arabian Sea, Balochistan, and is considered a strategic gateway for trade between China and the Middle East, Africa, and Europe. The port has been upgraded and expanded under CPEC, with new terminals, berths, warehouses, and facilities. The port handled about 1.2 million tons of cargo in 2022, an increase of 58% from 2019 (2021, April 19). The port also consumed about 300,000 tons of steel for its development, according to the Gwadar Port Authority (2021, April 19).

Ultimately, CPEC is likely to provide a great boost to both local and foreign investments in Pakistan’s Steel Industry by increasing profitability, competitiveness, productivity, and access to the International Markets.

Strategies to Leverage the Benefits of CPEC for Steel Producers

CPEC (China-Pakistan Economic Corridor) presents a great opportunity for Pakistan’s Steel Industry to capitalize on. The massive infrastructure development project is estimated to be worth around $46 billion and offers investments in various sectors from energy projects to road and rail networks, to ports (2023, April 13).

Steel producers in Pakistan are set to reap the rewards of CPEC, but in order for them to do so, they must formulate strategic plans that will evolve their businesses to meet the opportunities presented by this game-changing project.

Here are some strategies that can be employed by steel producers to leverage the benefits of CPEC:

Investing in Steel Technology

The modernization of the steel production processes is essential for the industry to grow, remain competitive and take advantage of the opportunities that CPEC offers (2023, April 13). Investing in advanced technology can help improve production efficiency, product quality and reduce costs.

Developing Strategic Partnerships

Partnering with other stakeholders within Pakistan's Building Material Industry can help increase market share and build better relationships with customers and suppliers. A strong network of strategic partners ensures that resources are utilized and knowledge is shared in an optimal way.

Making Use of Local Resources

By utilizing local resources such as tools, machines, raw materials, etc., Pakistani Steel producers can produce their products at a faster rate with fewer imports from China - thus ensuring that Indian Steel producers do not outpace them in this area. This also reduces costs associated with importing supplies from China or other countries.

Conclusion

The CPEC project has the potential to be a game-changer for the steel industry in Pakistan. With access to improved transport and communication infrastructure, the local industry can become more competitive in the global market. CPEC also provides a unique opportunity to tap into the potential of new technologies and the potential for more rigorous innovation, which can result in more efficient production processes and cost savings. Finally, CPEC's initiatives aim to reduce the cost of energy, which can also lead to improved profits. With the right implementation, the CPEC project can ultimately lead to increased economic prosperity and improved living standards for the people of Pakistan.

References

Business Recorder. (2023, April 13). The steel industry is likely to generate $32b annually by 2025. https://www.brecorder.com/news/40123587

State Bank of Pakistan. (n.d.). Industrial statistics. https://www.sbp.org.pk/ecodata/IndustrialStatistics.pdf

World Steel Association. (2021, April 19). Steel in the new age. https://www.worldsteel.org/media-centre/press-releases/2021/2021-04-19-steel-in-the-new-age.html

The Express Tribune. (2020, September 8). The steel industry is likely to generate $32b annually by 2025. https://tribune.com.pk/story/2343517/steel-industry-likely-to-generate-32b-annually-by-2025

State Bank of Pakistan. (n.d.). Exports by commodity group. https://www.sbp.org.pk/ecodata/exports_commodity.pdf

Wikipedia. (2023, April 13). China–Pakistan Economic Corridor. https://en.wikipedia.org/wiki/China%E2%80%93Pakistan_Economic_Corridor

Statista. (n.d.). Topic: Steel industry. https://www.statista.com/topics/1149/steel-industry/

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Robust Economic Growth Sustained

 A boom in the demand for steel is boosting the economy of the country. Exponential growth has been seen in the sales of steel and other construction materials in recent Months, which helped the economy recover from the adverse effect of the Covid-19 pandemic quickly than expected. The increase in spending and the lucrative package presented by the government for the construction industry not only improved the economy but also became fruitful for many manufacturing firms especially the building materials industry. Among the top-notch manufacturing firms, FF Steel made a benchmark to be the fastest-growing steel company in Pakistan within short span of time. The company was founded by Senator Nauman Wazir who was an aeronautical engineer in Pakistan Air Force and took an early retirement to set up FF Steel in Peshawar in 1986. Back then, there were barely any manufacturers functioning in KPK and there was a severe lack of cargo facilities for transportation of steel goods. Seeing the region's industry in these conditions, inspired Nauman Wazir to work for sustainable development and the socio-economic betterment of his native province. In 1986, production started with diverse products, 2.2 tons main frequency induction furnaces and an 8-inch manual steel re-rolling mill with a capacity of 3600 tons per annum. Commercial production of steel bars and steel ingots began in 1988. With the beginning of new century the company saw an exponential growth as a fully automatic re-rolling mill with the production of 5.5mm wire, making it the smallest size any re-rolling mill in Pakistan could produce. After the massive earthquake in 2005, the nation suffered substantial damage to construction and considerable human lives were lost. Pakistan was in need of quality steel so the impact of such disasters could be reduced in the future. That is when in 2006, FF Steel decided to produce only Grade 60 steel bars and to facilitate that, installed a 195 feet long, walking beam-cooling bed which was the largest cooling bed in Pakistan at that time. The following year, FF Steel was the first in Pakistan to produce ASTM 706 with a production capacity of 120,000 tons, per annum. In 2007, the company was taken over by Zarak Khan as CEO after succession to his father, Nauman Wazir. The Chief Executive Officer managed to decuple his company's annual turnover within the next decade.

A new brand identity was given to the company, changing its brand recognition and visual identity. A new tagline was chosen in line with the companies beliefs of safe construction of buildings and houses, so the mega destruction and loss of lives due to low quality construction is never repeated again. FF Steel genuinely felt the need to make a “Stronger & Safer Pakistan”, and went on further to choose that as their tagline.

FF Steel was announced as the fastest growing company in Pakistan by Arabia Fast Growth 500, in 2012, and today the company has a nationwide presence, with offices in Lahore, Karachi, and Islamabad, In addition to its headquarters in Peshawar. It has its production plants in Lahore & Peshawar with regular expansion plans. The company has employed a formidable workforce of over 1000 workers from all across the Pakistan including Sindh, Kashmir & Gilgit Baltistan. The company plans in setting up another production plant in Karachi to boost its production and match the increasing demand due to CPEC & Naya Pakstan Housing Scheme before enlisting on Pakistan Stock Exchange to further enhance the growth of the company.

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FF Gladiators vs. BoK Lions, a friendly cricket match was played last night to promote social, cultural and healthy sports activities at Islamia University Cricket Ground Peshawar. Both teams actively participated with zeal and sportsmanship and spectators were thoroughly entertained.

Mr. Amir Zafar (Chairman BOD PESCO), Mr. Nauman Wazir (Chairman FF Steel), Mr. Zarak K. Khattak (CEO FF Steel), Mr. Muhammad Ali Gulfaraz (MD BoK) and other sport lovers from FF Steel, BoK, Universities and Corporate Sector graced the event with their presence.

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FF Steel playing vital role in labour welfare Shaukat Yousafzai.

Peshawar 9th December 2021 FF Steel playing vital role in labour welfare and become a leading company to ensure 100% compliance of Khyber Pakhtunkhwa Social Security Act 2021. The efforts made by FF Steel Management in this regard are highly commendable. This was stated by Khyber Pakhtunkhwa Minister for Labour, Culture, Human Rights and Parliamentary affairs Khyber Pakhtunkhwa Mr. Shaukat Ali Yousafzai at a new enrollment ceremony at FF Steel Head office Hayatabad Industrial Estate Peshawar. Mr. Shaukat Yousafzai mentioned that industrialization process will yield results only with labour welfare and management with new innovations. He appreciated FF Steel’s new initiatives taken in the field of Industrial relations, expansion of networking and capacity building of workers. Earlier chairman FF Steel Mr. Nauman Wazir and CEO FF Steel Mr. Zarak K. Khattak received the Minister and briefed about activities and achievements in last more than three decades under the slogan of Stronger and Safer Pakistan. Mr. Zarak Khattak briefed the Minister about educational and motivational initiatives taken by FF Steel for the labour, students and trainers to further strengthen the steel industry in Khyber Pakhtunkhwa in particular and the country in large.

The Minister was informed that FF Steel is the fastest growing steel organization in Pakistan with two manufacturing plants one in Lahore and the other in Peshawar and corporate offices in all provincial capitals. The company is now diversifying towards exploring copper export business and steel re-bars export to Central Asian States. The company will hold its IPO in January 2022 which will further open its avenues towards diversification in new areas.

Mr. Zarak Khatak informed the Minister that being one of the most responsible manufacturer in Pakistan whether being environmental protection or quality product, FF Steel has maintained its reputation in adapting best human resource practices in Pakistan. A special ceremony to celebrate the implementation of KP Social Security Act 2021 was arranged at FF Steel head office to commemorate the KPESSI for its efforts.

The ceremony was also attended by Vice Commissioner ESSI Ms. Shahana Wazir, DG ESSI Mr. Anwar Khan and SSO Mr. Maqbool Wazir apart from senior officers from KPEZDMC and FF Steel.

Mr. Khurram Shahzad FF Chief Human Resource Officer briefed the Minister about FF Steel compliance under new social security act 2021 along with other steps taken for the benefit of workers and their dependents.

Later on Mr. Shaukat Ali Yousafzai distributed Social Security cards among the workers at FF Steel. He commended FF Steel’s top management on their determination of adapting best human resource practices and employee centric policies and urged other industries to follow the same model for the betterment in standard of living of workers and labour.

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FF Grade-80 Steel Bar Launched

For the first time in Pakistan Industry, Consultancy and Academia joined hands for a major industrial breakthrough by bringing revolutionary steel product – Grade 80 steel bar

 FF Steel held launch ceremony of the first-ever Grade-80 steel bar, the strongest steel bar in Pakistan, at Serena Hotel Islamabad on 17th November 2021.

Present at the ceremony were Honorable chief guest Senator Shibli Faraz, MD NESPAK – Dr. Tahir Masood, Pro-Rector NUST – AVM Dr. Rizwan Riaz, PEC Chairman – Muhammad Najeeb Haroon, Senator Sajjad Hussain Turi, Senator Daud Khan, Senator Taj Muhammad Afridi, Senator Sana Baloch, and Minister of Railways, Senator Azam Swati.

Grade-80 steel will change the landscape of the construction industry through the industrial revolution and economic growth said, Chairman FF Steel, Nauman Wazir Khattak. The product will have a significant effect on the Current Account Deficit. Given 13% less usage in construction and up to 10% cost-saving while using Grade-80 in comparison to Grade-60, it will considerably narrow down the current account deficit.

According to, Senator Shibli Faraz, through such initiatives good times are coming for the government and for the people of the country. He said that it will contribute to the country’s imports and wealth creation.

An extensive research study was conducted in collaboration with NUST and NESPAK resulted into FF Grade-80 to be the most economically feasible and beneficial steel bar in Pakistan. It will give a whole new direction for the construction of high rises and CPEC projects.

“Grade-80 will be of great benefit for the construction of bigger projects and high rises provided the higher strength and reduced cost,” said, MD NESPAK, Tahir Masood.

FF Steel is one of the leading and fastest-growing steel manufacturing companies in Pakistan. After over 30 years of growth starting with the first plant in Peshawar and then a second plant in Lahore, now the company is moving towards the final stage of IPO by the end of 2021, which is expected to be the largest IPO in history of Pakistan’s Steel Sector.

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Listing of Frontier Foundry Steel

Karachi: 27 September 2021: Frontier Foundry Steel (FF Steel), one of Pakistan’s leading and fastest growing steel manufacturers and Financial Advisory Consortium held a signing ceremony for the award of mandate for the upcoming listing of FF Steel on Pakistan Stock Exchange (PSX).

A Financial Advisory Consortium (FAC), comprising of HBL, Bank Alfalah Limited, AKD Securities Limited, and Alfalah CLSA Securities Private Limited, has been engaged to advise the Company for listing at the local bourse.

Nauman Wazir, Chairman — FF Steel, Zarak K. Khattak, CEO — FF Steel, Muhammad Aurangzeb, President & CEO — HBL, Atif Bajwa, President & CEO — Bank Alfalah, Aqeel Karim Dhedhi, Chairman — AKD Securities, Ali Ansari, Chairman — Alfalah CLSA, and other senior team members of the FAC were present at the ceremony. The FAC together holds strong credentials with access to deep-rooted capital market investor base, both domestically and internationally.

Incorporated in 1986, FF Steel produces top quality Grade-60 steel bars having plants in Peshawar and Lahore and ranks amongst the top three rebar manufacturers in Pakistan. The Company also intends to explore different opportunities in the South region. FF Steel, with its focus on achieving efficiency and capturing growth opportunities, has undertaken backward integration at its Lahore plant. The Company has also heavily invested in its IT infrastructure and boasts state of the art ERP system.

Furthermore, FF Steel, due to its superior quality and strong brand value has already started exploring diversification into copper export business and steel bars export avenues regionally due to its favorable positioning (proximity to Central Asian countries), which can potentially unlock significant value for the Company in the future.

Commenting on the occasion, Nauman Wazir, Chairman — FF Steel said, “Over the past 3 decades, FF Steel has built strong foundations through its systems and policies, team and market penetration; I am confident of a prosperous and secure future of the Company and its stakeholders. With the assistance of such a strong and professional FAC of HBL, BAFL, AKD and Alfalah CLSA, FF Steel will, Insha’Allah, be making a historic and one of the largest ever private sector IPOs in Pakistan”.

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FF Steel Plans Expansion Through Franchise Model

Pakistan’s steel industry is one of the most diverse sectors of the economy comprising of many players varying between small & medium enterprises to national level manufacturers that are all contributing towards a total demand of more than 7 million tons per annum. Every organization in this industry is working on a certain business model according to their size, target market and strategy.

Based on the business model and size of organizations, there are three main types of organizations; Small & medium enterprises, organizations that are working in a confined geographical region. These organizations usually produce inconsistent products and their quality parameters are not as per the standards. The general sales practice of these organizations is unstructured and their prices are not uniform. The owner of an enterprise is the decision-maker and he is himself responsible for all sales.

Next in line are the Medium-sized organizations, these steel producers co-exist in the market. The usual practice of these organizations is producing both ranges of products; steel that meets quality standards and sub-standard steel that costs cheap. A consistent perception in the market is that such organizations tend to mix counterfeit/quality rejected material in the lot. Another issue with these organizations is that their prices are irregulated and ownership of quality aftersales is not available.

Large scale steel manufacturing companies have a vast distribution network with an organized sales team catering for all of their clientele. Currently, these organizations are operating with a vast and structured retail network. This retail network caters nationwide needs of the organization as well as customers, the organizations do back up their product quality and customer queries. The issue of pricing is somewhat mitigated in large scale manufacturers as their ex-factory prices are controlled however, there is no control on retail price.

Customers are usually willing to opt for branded steel because they feel safe using products of superior quality in construction. Back up of product quality is really important for customers in the steel sector which only large scale companies are providing at the moment.

With a birdseye view of the overall market and a deep understanding of market needs in terms of area of improvement, FF Steel, an organization almost 4 decades old and soon to be the largest manufacturer of Pakistan after inauguration of its third plant in Karachi after an IPO planned at the end of 2021, came up with the idea of testing franchise model that has been in practice at various national and multinational set ups including the telecom sector, restaurant chains, textile sector and footwear industry. This system seems to cater the issues of retail such as quantity scams, infringement in quality and price uniformity across the retail outlets.

The Franchise model will be operated by the company so counterfeit products will be out of the question. The steel provided will be totally genuine and without any mixing of inferior quality steel, hence increasing overall customer confidence.

The company will make sure the customer receives the very same quantity and weight of the product they ordered and will have no compromise on the weight of the steel bars which is always a public concern when buying from dealers. Once the sale is done through the franchise, the company will always be there to provide backup to its product.

The prices in all the franchises will be standardized and fixed by the company. That would reduce the usual practice of charging high profits by the dealers who always aim for exuberant profits. At the same time, all the invoices will be generated and checked by the company with all its taxes paid. This certainly removes any grey area involved in the process and everything will be done through a documented legal channel.

This model is proposed to be beneficial for customers, the company and investors who will be investing in the franchise at the same time. FF Steel leapt forward in testing this new sales model in the building material industry and if this model is successful, it will bring a paradigm shift in the way the building material industry operates.