Anxiety amongst steel factory-owners is high due to the prevailing situation. A lack of supply of materials used and power shortages are resulting in high losses. Factory owners are demanding the government look into it.

Looking into this, business owners have said that the illegal import of steel is greatly affecting their market share and it’s hard for them to sustain themselves. Authorities in Afghanistan are the main focal point for these business owners. Additionally, last year a number of steel plants went bankrupt leaving factory owners worried that this might happen again.

Maihan Steel

Maihan steel is one example of these  They have said that the influx of steel in the local market has put them in danger and their market share has decreased. They started their operations 4 years ago with an investment of $1 million. Omid Fazli, the head of public relations at Maihan Steel has said that competing with foreign markets is difficult citing reasons that Afghan authorities provide tax exemption to foreign importers. Additionally, a smuggled steel in the market is also threat to local producers.

The Chief Executive Officer of Steel Plants Union, Mr. Abdul Nasir Rishtia stated that the increase in steel prices globally has also affected the Afghan market as well.

However, to clarify investors have said that almost $300 Million has been invested in the steel industry in Afghanistan. In spite of this businesses have faced a lack of resources and power outages throughout previous years.

Responding to these concerns, The Ministry of Industry and Commerce tried to address these concerns in the best possible way. They said that in order to keep up a fair competition, more land would be given to factory owners to operate their businesses and additional facilities will be provided to help them cater to the challenges.


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