Karachi, The Pakistan Yarn Merchants Association's (PYMA) Senior Vice Chairman, Sohail Nisar, and its executive committee have articulated their concerns about the anti-dumping duties on imported Polyester Filament Yarn (PFY). Amid the increasing demand for PFY in the textile sector, there's an underlining apprehension of a possible market monopoly by local producers which could drive up textile prices and aggravate the prevailing inflation.
According to a news release by Pakistan Yarn Merchants Association, Sohail Nisar highlighted the significant demand for PFY in Pakistan, which is estimated to be around 400,000 MT per year, a figure that local production falls short of. This discrepancy underscores the necessity of imports to balance the demand-supply equation. Nisar said, “Although anti-dumping investigations have been prolonged, the domestic industry has yet to provide substantial evidence to back their claims.” Notably, the National Tariff Commission's decision to impose anti-dumping duties has been overturned twice by appellate forums, deeming them as illegitimate. The superior courts of Pakistan, too, have continually questioned the legality of these duties and their compatibility with the trade remedy regime.
The executive committee underscored how regulatory duties (RD) in conjunction with anti-dumping duties (ADD) have inadvertently hurt Small and Medium Enterprises (SMEs) in the textile domain. The imposition of RD on various PFY types, some of which are no longer under the purview of ADD by the National Tariff Commission, has led to adverse effects on local businesses, igniting discussions about the real necessity of such duties within the prevailing system.
Nisar emphasized that there's an urgent need for a comprehensive review of these policies to ensure that they foster fairness, competitiveness, and efficacy in the textile industry. He voiced optimism that authorities, such as the National Tariff Commission and the Ministry of Commerce, will assess the broader picture for the textile industry's future, rather than catering to the interests of a limited number of local producers.