Around 3,00,000 knitting machines and looms have suspended operations in Pakistan during the last five years.

The polyester filament yarn (PFY) industry in the country is dated. PFY attracts 12 per cent customs duty versus polyester fiber, which attracts only seven per cent customs duty.

While production of local polyester staple fiber is enough to suffice Pakistan’s requirement, production of polyester yarn is only 25 per cent of the required quantity for Pakistan. However import duty of PFY is at 12 per cent compared to polyester fiber at seven per cent.

The yarn industry feels the ongoing anti-dumping investigation on polyester filament yarn, which is a basic raw material for polyester fabric, is totally unjustified. The user industry would be unnecessarily penalised even for those products which are not produced by the domestic industry. It adds that the cost for the end user would increase substantially and this would affect the weaving and knitting industry.

Mill owners want customs duty on polyester filament yarns to be reduced from 12 per cent to seven per cent and want immediate help for the polyester knitted fabric sector and a relief package which will enable it to avoid further problems in the next 12 months.