Karachi: The Pakistan Yarn Merchants Association (PYMA) has raised concerns over the imposition of an anti-dumping duty on the import of polyester filament yarn (PFY).
In a statement issued on Tuesday, Sohail Nisar, the Senior Vice Chairman of PYMA, and the executive committee expressed their reservations about this duty.
The issue is complex, revolving around the need to strike a delicate balance between protecting the domestic industry and meeting the strong demand for PFY in the textile sector. There is a risk that local producers may attempt to monopolize the market, which could lead to higher textile prices and worsen inflationary challenges.
Nisar pointed out that the demand for PFY in Pakistan exceeds the local production capacity, reaching around 400,000 metric tons annually. To bridge this significant supply-demand gap, imports are necessary, and it is crucial to acknowledge this fundamental aspect of market dynamics.
He stated, “Despite lengthy anti-dumping investigations, the domestic industry has struggled to substantiate its claims adequately. The National Tariff Commission imposed anti-dumping duties; however, appellate forums have twice deemed these duties unlawful. Moreover, the superior courts of Pakistan have consistently scrutinized the imposition of these duties, questioning their alignment with the trade remedy regime. The industry’s complaints about suffering due to imports clash with their increasing profits, raising questions that merit careful consideration. A prudent approach is needed to avoid unnecessary legal battles with PFY users and importers.”
The executive committee added that the introduction of regulatory duties (RD) alongside anti-dumping duties (ADD) inadvertently impacted Small and Medium Enterprises (SMEs) in the textile sector. RD was applied to various PFY types, including those no longer under ADD scrutiny by the National Tariff Commission (NTC). The widespread application of RD to all types of PFY and countries not involved in ADD investigations has counterproductively affected local businesses, sparking debates about its necessity within a cascading system.
Nisar emphasized that a critical reassessment of these measures is essential to ensure fairness, competitiveness, and efficiency in the industry. He expressed hope that government departments such as the National Tariff Commission (NTC) and the Ministry of Commerce will consider the future of the textile industry holistically, prioritizing the overall well-being of the industry over the interests of a select few local producers.
This stance reflects the ongoing dialogue between industry stakeholders, regulatory bodies, and government agencies, highlighting the need to address the challenges of the textile sector in a comprehensive and balanced manner. The decision on anti-dumping duties will have significant implications for the textile industry, its competitiveness, and its role in Pakistan’s economy. As the situation unfolds, stakeholders will continue to engage in discussions to achieve a harmonious resolution.
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