ISLAMABAD: The Pakistan Association of Large Steel Producers (PALSP) has urged upon the government to withdraw unfair tax exemption enjoyed by units of erstwhile tribal areas, which is massively misused and all products produced in tribal areas are sold in tariff areas of Pakistan. According to a communication of PALSP to the prime minister, the PALSP appreciates some of the recent initiatives of the government, aimed at revival of the local industry. However, the purpose agenda of the meeting of the Committee on Taxation Regime of NMDs held on 26th Dec 2024 has sent shockwaves to the steel as well as many other industries of the country. After attending the meeting, we noticed with great concern that the core agenda of the meeting is to perpetuate the killing exemptions unfairly granted to NMDs for the last 6/7 years. These exemptions to NMDs who are now part of Pakistan, give impression of one state and two rules within the same country. The tax exemption enjoyed by the industrial units in (Fata/Pata) NMDs is massively misused and all products produced in Fata/Pata are being sold to tax areas without any resistance, causing closure of tens of steel units in Hattar estate, Islamabad and Gadoon Industrial Estate. This is most unfair detrimental measure being practiced since last 6/7 years to ruin and destroy the local tax paying industry. PALSP protests against any measure aimed at perpetuation of these discriminatory exemptions to NMDs. The association has appealed to the government and to all those who matter to put a stop to these exemptions forthwith. The steel industry is facing unprecedented crisis and as a result the foreign investors like Century Steel, the first Chinese private sector investment, has already threatened to quit and stop further investments, casting a shadow over the industry’s future. Apart from steel industry - Long, Flat, Round industry, other important industries including ghee, plastics and tea are suffering due to massive misuse of tax exemptions enjoyed by the NMDs based industrial units. As a result, over 60% of the local steel industry have been wiped out, with more than 50 units closed down in KPK, Islamabad, Lahore, Karachi,…