In the wake of dried-up Polyester Staple Fiber (PSF) imports and the impending anti-dumping duty imposition, Polyester manufacturers have jacked up their already high PSF prices by another Rs 10 to Rs 12 per-kg to the detriment of PC yarn manufacturers. A renowned PC Yarn manufacturer and leading textile exporter expressed exasperation at the distorted operating environment for the PC Yarn industry. He explained that subjection of the basic raw material of the industry to 61/2 per cent non-refundable import duty and a further significant quantum of anti-dumping duty makes matters worse for them.
He revealed that PC Yarn in finished form is facilitated to be imported free of all duties whereas the basic raw material for its manufacture in Pakistan is heavily taxed. Thus, value-addition within the country is thoughtlessly discouraged in significant measure.
Yasin Siddik, Chairman of Aptma Sindh-Balochistan Region said that the sovereign guarantee extended to ICI as a quid pro quo for its investment in infrastructural development, whereupon import tariffs touched the level of 20-25 per cent or so, told heavily on the PC Yarn industry of Pakistan. The Yarn industry had been counting days and looked forward to the time that protection would come to an end and a level playing field available to it. However, all hopes remained elusive and PSF manufacturers were extended protection in the form of, first 41/2 per cent and then 61/2 per cent, import tariff and almost concurrently a significant measure of anti-dumping duty on PSF imports from the Far Eastern countries.
All the while PC yarn imports were facilitated to be imported @5 per cent. It went to the credit of the spinning industry that in spite of all odds it managed to survive and even placed Pakistan in a recognisable place of standing in the global textile market. Siddik demanded of the policy makers to remove all anomalies that were impeding the functioning and growth of industry in Pakistan. He said that punitive duties like anti-dumping duty as a matter of policy should not be leviable on industrial raw material. Even the 61/2 per cent customs duty on PSF import should be withdrawn.
Speaking of the underway increase of the installed capacity of one of the PSF manufacturers, whereby local production capacity would exceed domestic demand, a local agent of foreign PSF exporters replied that the local PSF industry should strive to be internationally competitive and seriously consider ex-Pakistan exports of PSF as a real option. An internationally competitive PSF industry would add to the international competitiveness of the textile industry of Pakistan that is the nation's pride and enable the larger integrated industry to progress and prosper as a whole.
This reporter gathered that any move to impose anti-dumping duty would further distort the operating environment and spell doom for PC Yarn import of yarn with PSF content would be a viable option rather than the locally produced PC Yarn made from PSF laden heavily with import duty and anti-dumping duty content.-PR