The shock news that end buyers could be faced with a 5% increase in taxes on incoming vessels bought the industry in Pakistan shuddering to a halt this week. Talks on anv new purchases were shelved bv an understandably concerned set of end buyers.
With most eves on the Indian budget and how that would affect their sentiment pricing, this latest piece of news has come as a bolt from the blue and could end up being a real setback to a sector which had only recently gained some decent momentum.
Some time will have to be taken out to fully understand where and how these new taxes are to be implemented and what exactly the fine print is before any knee jerk reactions are made. But, for the time being, all SNP activity has been placed on hold.
Making matters worse, a devastating blast rocked Karachi once again on the weekend, killing almost 50 people in the latest act of insurgency that has been afflicting the country in recent times.
Source: steelguru. 5 March 2013