ISLAMABAD: The domestic ceramic tiles and gl­­a­ss industries on Satu­rday warned the government that a substantial reduction in import duties under the second phase of the tariff rationalisation policy in the 2026-27 bud­get could force local manufacturers to shut down.

In a statement, All Pakistan Ceramic Tiles Manufacturers Assoc­iation Secretary General Atif Iqbal said the decision cou­ld seriously undermine the competitiveness of local manufacturers alr­eady operating under significant cost disadvantages.

He regretted that Regulatory Duty (RD) on imported tiles had been reduced by 20 per cent and Additional Customs Duty (ACD) by 50pc under the second phase of the tariff rationalisation plan.

He said the budgetary measures would adversely affect domestic industries, which cou­ld face closure following the sh­­a­­rp reduction in RDs and ACDs on imports of finished goods.

“How will the government address the serious implications of the second phase of the massive reduction in import duties on items already being manufactured by domestic industries?” he asked.

According to industry sources, Pakistan’s ceramic tile sector is currently operating at nearly 50pc of its installed capacity owing to a prolonged economic slowdown, subdued construction activity, exceptionally high energy costs and expensive financing.

Published in Dawn, June 21st, 2026