The Pakistan government may increase the import tariff of polyester fiber from 4.5% to 6%, so as to protect local producers and reduce the import tariff of PTA from 7.5% to 3%.

This proposal has been submitted to the Economic Coordination Committee for final decision by the Ministry of textile industry.

After the closure of Dewan Salman Fiber Company (DSF) in December 2008, Pakistan faced about 5000 tons / month of polyester staple fiber shortage.

As a result, in the fiscal year 2008-09, Pakistan imported 71 thousand tons of polyester staple fiber.

After the sharp rise in imports, the Pakistan government imposed anti-dumping duties of up to 10.44% on polyester staple products imported from Indonesia, Thailand, Korea and China.

However, the anti-dumping duties on polyester staple fibres imported from China have been abolished by the higher court of Raschel, which has led to an increase in imports from China.

Local polyester staple producers are now asking the government to increase import tariffs.

At a press conference, the Pakistan textile factory Association (APTMA) asked the government to allow zero tariff imports of raw polyester staple fibers.

The statement said that the government has allowed the import of polyester staple fiber blended yarn at zero tariff, but has imposed a 4.5% tariff on raw polyester staple fiber.

The levy on polyester staple fibers has reduced the utilization of synthetic fibers in raw materials mixing. At present, only 18%, and the proportion of the world is 60%.

Pakistan has 5 polyester staple production companies, including Dewan Salman fiber company, Ibrahim fiber company, ICI polyester company, Pakistan synthetic fiber company, Rupali polyester company.

The total installed capacity of Pakistan PET staple is about 611 thousand tons / year, but the current operating rate is only 61% of the installed capacity.

The Dewan Salman fiber company accounted for 39% of the total installed capacity in Pakistan, but the unit collapsed in December 2008.