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Govt body urges withdrawal of anti-dumping duty on PSF
Dec '10
The Standing Committee on Textile and Industry of the National Assembly has put forward its suggestion to the Textile Ministry to lift the anti-dumping duty on Polyester Staple Fibre (PSF). It has urged the Textile Ministry to take necessary actions to control the hoarding of raw cotton as well as yarn. The Standing Committee has also suggested the Textile Ministry to implement a law in order to prevent the accumulation and hoarding of raw cotton and yarn for the growth of the textile sector.

PSF is one of the most significant and extensively used fibre worldwide and its application is more than that of cotton. Earlier there were five PSF production plants in Pakistan with a joint manufacturing capacity of 639,000 tons. But the shutting down of the Dewan Salman, with a production capacity of 241,000 tons, has led to a fall in the manufacturing capacity of the plants. At present, the remaining four plants have a combined production capacity of 400,000 tons.

After making a detailed analysis, the National Tariff Commission came up with the suggestion that a new tariff structure should be adopted for manufacturing plants. The new tariff for PTA plants should be 4 percent while for PSF plants, it should be 7 percent. The Ministry of Textile Industry has undertaken a thorough study of the same and after a comprehensive discussion with the stakeholders, it came up with the proposal that the tariff for PTA plants should be 3 percent and 6 percent for PSF plants.

The Textile Ministry had convened a number of meetings with the manufacturers of PSF in order to discover the factors that led to the hike in the prices. On one hand, the PSF industry is of the opinion that the domestic prices should be similar to the global prices and on the other hand, the users of PSF believe that the anti-dumping measures taken against several Chinese firms has caused distortions in PSF prices for Pakistan. The producers are now apprehensive about the result of these measures.

Fibre2fashion News Desk - India

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