Lahore - The All Pakistan Textile Mills Association (APTMA) has said that six per cent import duty on import of polyester staple fiber (PSF) has ruined the textile industry as it has become uncompetitive when incidental charges are added to the import duty.
APTMA Chairman S.M Tanveer said the regional competitors are offering duty drawbacks besides rebate to their textile industries. Resultantly, textile exports from Pakistan has become 18% more expensive against the regional competitors due to higher domestic Polyester Fibre price e.g. in China, the FOB price for PSF is 70.1 Yuan/kg (U.S $ 1.13/Kg.) whereas in Pakistan it is Rs.137/Kg. ($1.34 /Kg), this difference is further compounded by the higher cost of doing business.
Textile industry in Pakistan is becoming unviable in terms of export of yarn and fabric he said, the industry growth has become stagnant due to non-diversification since long. He further highlighted that the world dependence on Polyester is around 70% at present against merely 19% in Pakistan. This situation has made it difficult for local industry to find place in the world market.
He said, unlike India, China, Bangladesh and other competitors there is also no duty drawback for industry in Pakistan, as a result, the import of PSF yarns into Pakistan has also started in huge quantities, so far during the first ten months of the current fiscal year over 38,000 Tons of Man Made Fibre yarn has been imported from Far East and India.