KARACHI: Welcoming the recent imposition of regulatory duties on imported items, CEO Shabbir Tiles and Ceramics Ltd Masood Jaffery on Wednesday said the measures would support the local tile and ceramic industry and discourage imports, particularly from China.

Addressing a press conference, Mr Jaffery said tile and sanitary ware manufacturers support the 20pc increase in duty on import of tiles and ceramics, followed by imposition of 9-36 anti- dumping duty on imports of Chinese products. The move will help curb under-invoicing and dumping of inferior quality products in local market, he said.

Mr Jaffery said importers were buying sub-standard tiles from different countries and dumping their excess inventories in Pakistan, affecting the sales of local manufacturers.

Locally manufactured tiles are expensive due to 21pc sales tax, as well as high cost of inputs including wages and power prices, he added.

He said anti-dumping duty on Chinese imports coupled with RD will give breathing space to the local manufacturing industry which is on the verge of collapse despite huge investments. Furthermore, it would also create opportunities for new investors and lead to job creation.

Mr Jaffery claimed that in 2016-17, Shabbir Tiles suffered a huge loss of Rs190m due to dumping of imported tiles.

He said the construction industry in Pakistan is growing each year which is resulting in high demand of ceramic and porcelain tiles. Most manufacturers are not utilising their full capacity due to the availability of huge volume of inferior quality imported products which have been dumped here, he said.

The local industry, despite suffering huge losses, is producing tiles as shutting down businesses would directly affect the livelihood of millions labourers and white collar workers, he added.

Published in Dawn, November 2nd, 2017