lron Steel & Copper Sector Investment Pitchbook (English Version)

Following are the key highlights of the Pitchbook compiled for investors from around the world especially China, who are interested inlron Steel & Copper Sectorof Pakistan.

1. **Country Investment Environment** - Stable reformed economy with B‑ credit rating, low inflation, and stable currency. - **SIFC** provides one‑window approval, policy support, and investment protection. - Favorable demographics: 255 million population, 64% under 30, large young labor force. - SEZs offer **10‑year tax holidays** and fiscal/trade incentives. - Strong China‑Pakistan cooperation under CPEC and CPFTA (duty‑free raw materials). 2. **Sector Overview & Market Size** - Industry growing at **7% CAGR**, driven by construction, infrastructure, and manufacturing. - Steel: ~7 million tons domestic demand; 13 million tons installed capacity; over 400 metal units. - Copper: >200,000 tons domestic demand; ~6 billion tons copper ore reserves. - Iron ore: ~1.5 billion tons reserves, including high‑grade ore (60–65% Fe). 3. **Core Advantages** - **Strong demand**: Booming construction, electrical infrastructure, and renewable energy. - **Rich resources**: Large undeveloped copper‑gold deposits (Reko Diq, Saindak) and iron ore. - **Policy support**: R&D, export, and technology upgrade incentives; GSP+ and duty‑free access to EU/UK. - **Strategic location**: CPEC and three major ports lower logistics costs for exports to GCC, China, and Africa. 4. **Key Players** - Local: ISL, Mughal Steel, Aisha Steel. - International: MCC (China), Barrick Gold, Metal One (Japan). 5. **Industry Gaps** - Steel: Dependence on imported HRC; limited local iron ore processing. - Copper: Very low local manufacturing and fabrication; minimal end‑product conversion. 6. **12 Priority Investment Opportunities** - **Iron & Steel**: Local iron ore processing (DRI); HRC production; EAF long products; seamless tubes; CR/galvanized steel; large‑scale mining & steelmaking. - **Copper**: Secondary smelting; refining/alloying facilities; wire/conductor foundries; utensil/foil rolling; scrap recycling; large‑scale copper mining & processing. 7. **Investment Incentives** - **Tax**: 10‑year income tax holiday in SEZs; tax breaks and reduced duties. - **Trade**: 0% duty on raw materials for export products; exempted duties on coal, concentrate, ore in SEZs. - **Ease of doing business**: 100% foreign equity allowed; fast‑track approvals; digital registration. - **Infrastructure**: Subsidized land in Gwadar Free Zone (20–30% lower for Chinese investors); dedicated industrial parks. 8. **Market Potential** - High import substitution value in flat steel and copper products. - Huge upside from developing Reko Diq and other large mineral projects. - Strong export potential to regional markets via CPEC logistics.