For overall economic development of a country, a developed steel industry is very crucial. Pakistan is a developing economy with abundant potential to attain rapid industrial growth. However, sustainable industrial and economic growth depends on a sustainable and resilient steel sector. Pakistan steel industry is one of the major revenue contributing sectors that shares a major chunk in terms of taxes and duties. This sector contributes around 0.7% to Pakistan’s GDP and has a weightage of 3.5% in Large Scale Manufacturing Index. The total revenue contribution of Steel industry is approximately PKR 300 bln.

Pakistan steel industry produces around nine to ten million metric tons of steel per year. The sector consists of three major verticals of steel including Long, Flat and Round sector. Long steel sector plays major role with 60% share in total steel production and produces around 6 MT steel. The long steel sector consists of Billets, Re-enforcing bars, structural sections, wire rods and angles etc. Pakistan's long steel industry has potential not only to cater domestic demand but has the ability to export steel to other countries.

The government’s increased focus on infrastructure resulted in the initiation of a series of development projects during the last decade. Especially the projects related to China-Pakistan Economic Corridor (CPEC) boosted the steel sector. As a result of these mega projects, during recent years, a lot of new investment was done and new steel mills were established and at the same time many existing mills increased their capacities.