% import tariff on polyester staple destroys Pakistan’s textile industry

The Pakistan Textile Mills Association (APTMA) said that the imposition of 6% import duty on polyester staple fiber (PSF) has ruined the textile industry as incidental charges are added to the import duty, making the industry uncompetitive.
SM Tanvee, chairman of APTMA, said that regional competitors provide tax rebates in addition to discounts to the textile industry. As a result, textile exports from Pakistan are already 18% more expensive than competitors from other regions. This is caused by the high price of domestic polyester fiber. For example, in China, the FOB price of PSF is 70.1 yuan per kilogram ($1.13/kg). In Pakistan it is 137 rupees per kilogram. ($1.34/kg), this difference further exacerbates the high cost of doing business.
Pakistan’s textile industry has become unsustainable due to exports of yarn and fabrics, he said, adding that the industry’s growth has become stagnant due to lack of diversification. He further emphasized that the world relies on about 70% of polyester, while in Pakistan it is currently only 19%. This situation makes it difficult for local industries to gain a foothold in the world market.
Tanvee said that unlike India, China, Bangladesh and other competitors, the Pakistani industry does not have tax rebates, so imported PSF yarns have also started entering the Pakistani market in large quantities. So far, more than 38,000 tons of man-made fiber yarns have been shipped from the Far East. and imported from India.