Two major business organizations in
All Pakistan Textile Mills Association (APTMA) is asking the government to remove the 4.5% import duty on the import of PSF as raw material for it makes their products less competitive in the international market.
According to APTMA’s statement, there is zero percent duty on the import of
PSF- blended-yarn while textile mill owners have to pay 4.5% import duty on PSF. This is a serious “tariff anomaly” and should be rationalized.
On the contrary, domestic manufacturers of PSF are telling the government not to cut the tariff on PSF for it would hurt the local industry. A leading PSF manufacturer in
He said that the importer of PSF-blended-yarn has to pay nine percent duty.
Pakistani PSF manufacturers said that the textile mill owners can import PSF at zero duty under the DTRE scheme. As a result, they can price their products competitively.
However, this has affected the local PSF producers. This low duty is one of the main reasons behind the failure of Dewan Salman Fibres, one of the largest PSF producers of the country.
Production of PSF is a highly capital oriented business because PSF is manufactured from crude oil through a series complex chemical process and requires lots of expensive machineries.
Hence, it is very much important that government improvise tariffs on importing PSF. Neighboring countries such as