ISLAMABAD, Feb 6: The National Tariff Commission will hold a public hearing on Feb 21 to consider the impact on domestic industry of drastic reduction in customs duty from 20 to 10 per cent on soda ash in the budget 2003-04.

While requesting restoration of the previous rate of duty, the local industry has complained that the reduced rate has resulted in flooding into Pakistan of cheaper imports of soda ash which is used in soaps, detergents, paper, glass, textile and certain chemical industries.

The industry says that as the cost of production in Pakistan is much higher owing to enormous rise in the cost of natural gas, electricity and coke, it is hard put to it competing with imports of soda ash from countries where, moreover, it is subsidized by the state.

In Pakistan, no subsidy is allowed to the industry because of the dictates of international financial institutions.

In two months of August and December 2003, the local industry has contended, the imports of soda ash were about 10,000 tons, as against the total local demand, on average of 23,500 tons per month.

The decision to allow import at drastically reduced duty was all the more questionable because the local production of soda ash already exceeded its consumption, the industry further argued.

While scheduling a public hearing on the issue, the Commission has also invited the views and suggestions of all the parties having interest in the business relating to or associated with the finished products and inputs of soda ash industry to reach the office of Secretary, NTC, in Islamabad within 10 days.