and the annual growth rate is eight to 10 percent. There are total six manufacturers, two in Sindh; two in KP; two in Punjab, while last year one manufacturer has to shut down its plant due to heavy losses.
If the government removes anomalies in Import Trade Price (ITP) for imported tiles and review its FTA with China it can help save the local industry.
The Chinese tiles issue was already hampering the industry with the concessions and decrease in ITPs from Iran / the Middle East has further dent the local industry, the official said.
The official import from Iran is 0.3 million per month, while the smuggled tiles, which are coming from Iran through land route are much higher and mis-declared as tar-coal and Rs12,500 is being paid per container.
Iran is the fifth largest producer of ceramic tiles in the world and due to sanctions it is selling its production at cheaper rates.
The officials said that tiles are also being imported under ATT, but unfortunately the product never reaches Afghanistan and end-up in Pakistani market.
Making ceramic and porcelain tiles part of the FTA with China shows the ignorance of the policymakers about the potential of the local industry that has invested Rs40 billion so far.
The tiles production capacity in Pakistan is over 60 to 65 million square metres, while the capacity utilisation is far below due to the influx of smuggled tiles and abnormally low ITPs.
A study conducted by the National Tariff Commission (NTC) has also indicated misappropriation and had suggested imposition of 40 percent anti-dumping duty on Chinese tiles.
European countries have imposed anti-dumpy duty on Chinese tiles. China is the largest producer and produces 5.2 billion tiles and exports 600 million annually, the official said.
Last year, a major local manufacturer from Lahore had to shut down its plant due to losses. It is high time strict measures should be taken to address these issues, which are playing havoc with the industry, said the official of PCTMA.
On a question about the gas shortage, they said the local industry was already seeking alternate energy resources such as coal and some plants had already setup coal-fired power plants.
On the quality of the local product, a leading local manufacturer said: “We are exporting our product to Spain.”
He appreciated the Ministry of Commerce for taking input of the industry, while negotiating the second phase of the FTA with China and expressed the hope it would take appropriate action to protect the local tile producers.