Under a new FBR circular, registered iron and steel manufacturers that meet specified scrap-import and tax-integration requirements will be charged sales tax of PKR 5 per unit of electricity consumed, according to the tax authority. The notification was issued under the Sales Tax Act, 1990, read with SRO 1245(I)/2026 dated July 31, 2026, and supersedes Sales Tax General Order 14/2026 dated Aug. 4, 2026. The Pakistan Association of Large Steel Producers welcomed the move, saying the new tax framework could help revive Pakistan’s documented large-scale steel industry. The lower tax rate, combined with economies of scale, is expected to improve capacity utilization and support a recovery among compliant steel producers. The measure follows changes introduced through the Finance Act 2026 and subsequent FBR orders aimed at improving documentation and tax compliance in Pakistan’s steel sector.