All Pakistan Textile Mills Association (APTMA) has sought imposition of 10 percent regulatory duty on the import of yarns and fabrics to support the domestic trade. Sources told Business Recorder Wednesday that APTMA has sent a written request to ministry of finance for imposition of regulatory duty on these two products, imports of which witnessed some 45 percent surge during last three years.
As per supportive statistics provided by APTMA to ministry of finance, during the last fiscal year 2014-15, yarns (chapter 54-55) and fabrics (chapter 54-55) amounting to Rs 92.217 were imported compared to Rs 63.416 billion in FY13. They said presently, a large quantity of yarns and fabrics is being imported from India, capturing the share of domestic market. Therefore, APTMA demands regulatory duty on the import of yeans and fabrics to protect the domestic industry and trade.
According to a letter written by Tariq Saud, Chairman APTMA to Muhammad Ishaq Dar, Federal Minister for Finance, due to high cost of doing business, basic textile industry particularly spinning, weaving and processing sub-sectors have been rendered uncompetitive both in the international and domestic markets. The import of synthetic yarns and fabrics for consumption in the domestic commerce is gradually increasing and now import of man-made fibre yarns and fabrics under Chapter 54 & 55 of the customs tariff (filament & staple fibre) have made threatening inroads in the domestic commerce, he added.
Import data of the Federal Bureau of Statistics (FBS) revealed that import of yarns and fabrics have increased in quantity by 37 percent and 56 percent, respectively from 2012-13 to 2014-15, he maintained. According to chairman APTMA, surge in import of yarns and fabrics in Pakistan is adversely affecting the domestic industry resulting in closures of mills producing yarns and fabrics meant for domestic consumption. In view thereof, he requested the finance minister to provide the domestic textile industry with a level playing field to compete with subsidised imports by imposing regulatory duty @10 percent.
He hoped that imposition of RD will enable the domestic industry to withstand the challenge of dumped imports. Previously, in October last year, APTMA urged the federal government to put the import of cotton and synthetic-based Indian textile goods, including all types of yarns, fabric and garments, on the Negative List as unchecked onslaught of imported and smuggled textile goods has created a crisis situation in the textile industry.
Accordingly, the federal government imposed 10 percent RD on imports of cotton yarn, grey and processed fabric, particularly from India, to protect the domestic industry. Sources said India is providing safeguards to its to textile industry and creating hurdles in the way of level playing field by having introduced Pakistan-specific duties, reaching highest range of 100 percent.
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