Import
Ferrous Scrap Metal Imports in Pakistan: Key Grades and Market Insights
by Malik Sons Trade/ Jan 2025
Pakistan’s Steel Industry & Ferrous Scrap Imports 2025 Overview
Pakistan primarily relies on Karachi Port, Muhammad Bin Qasim Port, and Gwadar Port for scrap metal imports, with Karachi and Qasim Ports handling the majority of ferrous scrap shipments..
Steel Production Capacity in 2025
- Installed capacity: 5.5 million metric tons
- Annual production: Around 6.3 million metric tons
Pakistan uses electric arc furnaces (EAFs), melting imported scrap metal instead of iron ore, to make new steel. This method is cost-effective and eco-friendly, and widely used in countries like Turkey, India, and Vietnam.
Scrap Metal Imports: 2025 Snapshot
- January 2025: 213,818 tons of scrap imported
→ 4.99% less than January 2024
→ 6.3% more than December 2024 - October 2024: 228,217 tons imported
→ 15.6% increase month-over-month
Key suppliers include the UK, UAE, and other European nations.
Common Scrap Grades Imported into Pakistan:
- Heavy Melting Scrap (HMS)
- Shredded Steel Scrap
- Plate and Structural Scrap (P&S)
- Re-rolling Scrap
- HR Trimming Scrap (Bobbin Scrap) – often shipped by Malik & Sons Global Enterprises
- Cast Iron Scrap
Non-ferrous scrap (compressors, motors, copper, aluminum) is also imported in smaller volumes.
Regulatory Changes in 2025
Pakistan’s Federal Board of Revenue (FBR) canceled the Export Facilitation Scheme (EFS) for scrap importers:
- Imports must be used within 9 months
- Requires bank guarantees and annual audits
- Aims to reduce tax evasion and improve transparency
Growing Demand from Infrastructure
Pakistan’s demand for steel remains high due to:
- Government spending on infrastructure
- Growth in housing, roads, energy, and urban construction
- Expansion in automotive and industrial sectors
The Road Ahead
Pakistan is gradually transitioning into a “scrap cycle” economy, where aging infrastructure and old buildings are beginning to contribute to the supply of domestically generated scrap metal.
However, as of 2025, Pakistan remains heavily dependent on scrap imports, highlighting the urgent need to develop local recycling infrastructure over the coming decade.