Pakistan might exploit Afghanistan’s iron ore reserves to cut the cost of domestic steel manufacturing, according to Federation of Pakistan Chambers of Commerce and Industry President Mian Nasser Hyatt Maggo.
Recognizing the tremendous untapped potential of Afghanistan’s Hajigak mine, he encouraged the government to assist in the commissioning of a feasibility study to explore the possibilities for cost-effective and long-term iron ore supply to Pakistan’s steel sector.
Maggo stated in a statement that given the surge in household consumption of the product, Pakistan’s demand for steel was set to grow rapidly.
“A smooth supply of steel from Afghanistan to Pakistan will help the latter greatly in the coming decades,” he said. Maggo pointed out that, other from Pakistan, no other country had a flexible land access to the Hajigak mine, as Hajigak was only 400 kilometres distant from Peshawar.
According to Topline Securities analyst Mehroz Khan, if undeveloped quantities of iron ore in Afghanistan were recovered and supplied to Pakistan, they would provide a lifeline to the country’s steel industry and benefit the construction sector.
