Accordingly, the PSF manufacturers have started running from pillar to post in convincing the government to defer the decision in the larger interest of the textile industry, already on the ventilator due to unprecedented energy crisis. The domestic PSF manufacturing industry currently comprises four manufacturers, namely, ICI Pakistan, Ibrahim Fibres Limited, Rupali Polyester Limited and Pakistan Synthetic Limited. Another manufacturer, Dewan Salman Fibres Ltd, is not currently into production due to unit's closure. All the four PSF manufacturers represent 86 percent of the total domestic production.
The textile industry, relying on imported PSF, has criticised the PSF manufacturers for manipulating anti-dumping duties to fleece them. However, they added, still the local manufacturers were selling PSF at Rs 10 per kg higher than the imported one. They have expressed fear that the local manufacturers will fleece them further if anti-dumping duty is enhanced further ahead. It will give rise to prices of polyester cloths in domestic market.
The NTC is likely to announce verdict on December 22, 2012 on an investigation initiated in April 2012. The NTC is authorised to impose a maximum of 10.4 percent anti-dumping on imported PSF. China, Korea, Thailand and Indonesia are the destinations wherefrom the PSF is being imported at present. Pakistan is currently importing some 100,000 tons PSF to meet industry requirements, which costs some Rs 10 less than the local one. Interestingly, the monopoly of local manufacturers is being strengthened with every passing day, as they are also planning to enhance their capacities in a situation when the NTC is imposing anti-dumping on imported PSF.
The industry sources said the local PSF manufacturers are making difficult for them to remain cost effective, as increase in the cost of raw material is becoming unbearable for them when they are already being pushed back by the severe energy crisis over the last five years in the country.