Despite sluggish activity in the industrial and construction sectors, imports of raw iron and steel materials increased by 5.87% in the first four months of the current fiscal year, reaching nearly Rs 52.95 billion. In contrast, exports of iron and steel products dropped sharply by 72.74% to Rs 1.24 billion, down from Rs 4.57 billion a year earlier. The increase in raw material imports alongside declining exports suggests higher domestic consumption, contradicting industry claims of a construction slowdown. The export decline is largely blamed on policy uncertainty and the cancellation of the 8% export subsidy.
