Faiza Tehseen

Indigenous electric steel production can help Pakistan save precious foreign exchange and cut production and import costs. It will not only feed the local industry, but excessive material can also be exported to earn profits, metallurgist and mechanical engineer Faizan ul Haq Mirza told WealthPK.

“Electric steel is used in electrical applications and is manufactured from iron ore and scrap steel. To create different electric steel grades, during the production process, traces of some other minerals are also added including carbon, silicon, manganese, vanadium, zinc, and tungsten,” he said.

Steel consumption in Pakistan has steadily increased due to infrastructure development, increasing industrial units, and construction projects. To meet domestic needs and large-scale electric steel production, Pakistan faces many challenges, including forming large production units and energy.

“The recycling nature of electric steel provides both economic and environmental benefits, as it uses scrap material as a feedstock. It aligns with the global sustainability efforts to produce green steel. The shift to electric steel also aims to reduce carbon emissions associated with the traditional steel manufacturing methods.”

Although electric steel production is more cost-effective and sustainable, it faces many challenges including unskilled labour, lack of technological expertise, and sufficient finances to establish the manufacturing units. By introducing a flexible policy framework, the foreign investors can also be attracted to invest in electric steel manufacturing industry in Pakistan.

“As the need for clean energy sources is rising to avoid environmental pollution, the demand for electric steel is also rising. To improve efficiency and reduce power losses, electric steel is widely used in the cores of electromagnetic devices, including capacitors, solenoids, relays, inductors, transformers, generators, and motors,” he said.

The local electric steel production will not only fetch a huge income to the state wallets but also open a new window of opportunities for jobs, trade and businesses. A serious effort from the government in electric steel production can strengthen the industrial sector, added Faizan.

Talking with WealthPK about the availability of minerals as a raw material for production of electric steel, Chief Geologist Balochistan based Koh-e-Daleel Mining Company Abdul Bashir said, “All the minerals used in the production of electric steel abundantly occur in different areas of Pakistan.”

He said the establishment of refining, value addition, and grading units near the mining place would help get raw materials for electric steel production and many other industrial units in Pakistan.

He also emphasized the importance of raising awareness about minerals and their trace elements. Regular workshops on this concern can greatly change the behaviour of miner, labour, and other stakeholders. It will help establish both electric steel industry and a strong mineral sector in the country, he added.

The global market size of electric steel is anticipated to reach US$ 50.09 billion at the compound annual growth rate (CAGR) of 5.6% by 2032 from US$ 30.70 billion in 2023. Pakistan can also get its profit share from the vast electric steel market by starting its production.

Credit: INP-WealthPk