Pakistan's textile mills want import duty on polyester staple fiber (PSF) to be abolished. They want imports of specialty fibers including acrylic to be allowed at zero per cent import duty enabling the industry to diversify its product base.

They also want imports of viscose staple fiber, which is not being manufactured locally, to be allowed at zero per cent customs duty. The country’s textile industry is predominately cotton based with an odd fiber mix, i.e. 80 per cent cotton and 20 per cent manmade fibers. The global trend is 70 per cent manmade fibers and 30 per cent cotton.

Mills say the proposal to increase customs duty on PSF imports would not only make export-led textile goods unviable but also make PSF-based textile goods for domestic consumption unaffordable. Already, they say, cheaper imports and smuggling of fabric and synthetic yarn have made inroads into the domestic market due to the present high polyester tariff.

Pakistan’s textile industry is unable to produce the exportable surplus, in particular manmade fiber-based textile products, to benefit from the enormous opportunities under GSP Plus of export of synthetic-based textile products.

The country’s textile industry finds itself unable to compete in man-made fiber textile and clothing products owing to the protection extended to local PSF.