KARACHI: All Pakistan Ceramic Tiles Manufacturers Association (APCTMA) has urged the government to withdraw increase in gas prices as it would make locally produced tiles uncompetitive in local and global markets.

The industry has already been hit by a huge influx of smuggled tiles and imports at lower valuation, capturing over 40 per cent of the country’s tile market of worth nearly Rs80 billion. Domestic manufacturers continue to suffer, owing to their higher production costs and uneven competition from cheaper imported products.

Increase in gas prices will badly hamper the sales and profitability of local tile industry and will further intensify the share of imported tiles, he feared.

The association said in a press release that the tiles industry was intending to invest in capacity enhancement to further increase its production and meet the soaring demand. Tile industry is in the revival phase and expecting relief measures from the government against the difficulties of rising energy prices, high tax rates, extremely low Import Trade Price (ITP) of imported tiles from China in addition to massive inflow of smuggled tiles from Iran. The gas tariff hike would add to this list.

Gas prices for general industrial and captive power plants has been increased by 30 per cent from Rs600 to Rs780 per mmbtu. This decision would have a negative impact on direct and indirect employment of over 50,000 in the local tiles industry.

Published in Dawn, September 20th, 2018