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APTMA demands zero import duty status on PSF
Jun '08
APTMA has strongly urged the government to reduce import duty on Polyester Staple Fibre from the current level of 6.5% to zero and provide level playing field to the industry to enable it to compete in the international marketplace.

The current fibre mix of Pakistan's textile industry is at 20:80 MMF to cotton as against the world average of 60:40.

This has rendered Pakistan's exports at a disadvantage as against its competitors and has not benefited it in securing its share in the expanding MMF based textiles and clothing in the international marketplace.

APTMA has said that if PTA or PSF industry needs support, the government should support them directly.

However the support should not be at the cost of value addition textile industry.

APTMA has further said that duty on textile industry's raw material is against the government's stated policy of NO TAX ON EXPORTS.

Immediate effect of the structural weaknesses is magnified in view of the shortage of cotton in the country.

Availability of Polyester Staple Fibre at competitive prices to the industry would ease pressure on cotton.

The textile industry of Pakistan gets PSF at 18.5% high price than its competitors. The difference constitutes 6.5% import duty, 8% sea freight and 4% import cost.

Even if customs duty on PSF is made zero the differential of 12% will remain for the local PSF manufacturing industry to compete effectively.

The spokesman further added that the textile industry is not allowed drawback against these cost differentials.

With low usage of PSF, the industry cannot viably manufacture several lines of products based on MMF like ladies garments and children garments.

APTMA has asked the government to enhance use of PSF in its bid to double textile exports in the next five years.

All Pakistan Textile Mills Association

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