KARACHI: The Korangi Association of Trade and Industry (KATI) said that government should restrict import via third country and instead encourage direct imports from a country of origin.

Exporters have urged the government to ban imports through third country as this is promoting smuggling, under-invoicing and causing injury to the domestic industry.

They said there had been a rapid increase in imports particularly of Indian textile goods through Dubai, which was causing adverse implication on the local textile industry.

KATI Chairman, Masood Naqi said that when direct imports are made from a country the shipment and certificate of origin of the manufacturing country could be verified online. Citing an example, he said “when goods coming from China should be directly imported from China, rather than sending to another destination.”

Former chairman of Pakistan Towel Manufacturers Association, Methabuddin Chawla said that if the government fails to check such imports the domestic industry would be destroyed.

Chairman of Pakistan Apparel Forum, Muhammad Jawed Bilwani said that already more than 221,500 power looms have been closed down and scraped amid disastrous effects of smuggled fabric into local markets.

He cited an example that Directorate General, Intelligence and Investigation, Federal Board of Revenue (FBR) recently busted an organised gang of importers who were importing banned Indian fabrics to Pakistan via Dubai.

Furthermore, the customs authorities seized 18 containers loaded with banned Indian cloth and fabric, earlier they failed to catch 106 containers loaded with India fabrics, which made their way into the local market.

Published in Dawn, July 20th, 2017