Textile firm backs dumping duty.

KARACHI -- A textile company listed at Pakistan Stock Exchange (PSX) has demanded that the government continue charging anti-dumping duty (ADD) on import of polyester filament yarn (PFY) for at least five years to discourage the dumping of yarn in the country, mainly by China.

PFY is a raw material for knitting and weaving to make polyestre fabrics like clothes, curtains, bed sheets, ropes, etc.

In its Annual Report 2023, Gatron (Industries) Limited said that ADD levels in Pakistan were low compared to what was imposed by other countries against China.

'However, even at these low levels (in the range of 2.78% to 6.82% or on an average of 4.8%), the continuation of ADD and its effective collection in Pakistan for next five years is essential.'

The outgoing year was a challenging period for the company characterised by a severe politico-economic crisis. Moreover, still 'unabated dumped imports of PFY continued despite falling foreign exchange reserves and LC (Letter of Credit) opening difficulties.'

The dumping was mainly due to the Chinese mega expansions over the last two years. It was said that producers in China wanted to start their new capacities and companies to operate above 90% to give a good picture to banks and local governments to allow them to fully draw their loans for completing their expansions, the local company said in the report.

Importers have evaded/ still not paid ADD for much of the previous six years. They get a stay in one high court, which is dismissed in five or six months. Though they cannot file the same petition in another high court once it has been dismissed, they do so by hiding the fact that it has been dismissed earlier and by declaring that this is the first time they are filing petitions against ADD.

'In this way, they have so far filed petitions against the PFY ADD one after the other (for more than 35 times).'

Importers have so far made a mockery of government's efforts to collect ADD on PFY with over Rs16...