KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed to assess the iron ore supply potential from Afghanistan, a statement said on Thursday.

FPCCI President Mian Nasser Hyatt Maggo said that the government should engage in the detailed feasibility study to assess the cost-effective and long-term iron ore supplies potential for Pakistan’s steel industry from Afghanistan’s Hajigak iron mines.

Pakistan can benefit from the next-door supplies for decades to come, it is a cost competitive multi-billion dollar geo-economic prospect, he added.

Pakistan has the shortest land route to Afghanistan, as Hajigak and Peshawar are only 400 kilometers apart, which substantially adds to its geo-economical value and will help to upkeep Pakistan’s economic security, Maggo said.

Pakistan Steel Mills former chairman and FPCCI former vice president Engr M A Jabbar said that Prime Minister Imran Khan’s vision for low-cost affordable housing for every household coupled with the skyrocketing steel prices warrants an immediate need to secure iron ore supplies for the country from Afghanistan.

Jabbar recommended that Pakistan should take the lead and sign a memorandum of understanding (MoU) with the Afghan government before any other regional or sub-regional country, to explore the iron ore reserves on a large-scale.

The mines may contain up to 2,100 million tonnes and more of high-grade (61 per cent to 69 per cent) iron ore reportedly translating into $450 billion in today’s market, which makes Hajigak Mine the largest in Asia, he said.

The iron ore from Afghanistan will change the cost matrix of locally manufactured steel, which has remained dependent on higher logistic costs than the material themselves while importing from countries namely Australia, Canada, South Africa, he added.

The Sustainable Policy Development Institute (SDPI)’s Researcher Engr Arshad H Abbasi also recommended having a look at the Hajigak Mine and its potential benefits to Pakistan.

The FPCCI president said that the long-term mining and import arrangement with Afghanistan will be a win-win mechanism for both countries as it will create a sustainable stream of income for the resource-restrained neighbours and create thousands of jobs.

Maggo explained that tapping Hajigak’s iron at a competitive price may soon be proven to be a lease of life for the defunct Pakistan Steel Mills and expansion of the steel industry in Pakistan.

It has the potential to mass produce steel products for Pakistan’s booming housing and real-estate sectors and can turnaround the cost competitiveness-oriented production by Pakistan Steels Mills and more to be followed once the study is commissioned to save tens of billions of rupees, he added.