Pakistan’s ceramic tile manufacturers have urged the government to maintain the existing tariff structure on imported finished tiles in the upcoming federal budget, warning that any reduction in regulatory duties could further weaken an industry already operating under significant pressure.
Industry representatives told ProPakistani that local manufacturers are currently utilizing only about 50 percent of their installed production capacity due to sluggish economic activity, weak demand from the construction sector, and persistently high energy costs. They said the industry is also facing growing competition from imported tiles, particularly from countries with substantially lower production and energy expenses.
According to industry stakeholders, local manufacturers are not seeking additional protectionist measures. Instead, they are asking the government to address the structural cost disadvantages that make Pakistani products less competitive than those produced in regional markets such as China and India.
They noted that rising electricity and gas tariffs, expensive financing, and increasing compliance costs have significantly raised production expenses for domestic manufacturers. As a result, local companies are finding it difficult to compete with imported products that benefit from lower manufacturing costs and larger economies of scale.
The industry warned that any reduction in existing duties on imported finished tiles could lead to a surge in low priced imports entering the local market. Manufacturers argue that such a move would further suppress domestic production, reduce capacity utilization, and threaten the long-term sustainability of the sector.
Industry representatives also expressed concerns over what they described as dumped imports, saying local producers cannot effectively compete against products entering the market at significantly lower prices.
They cautioned that easing tariff protections at this stage could accelerate pressure on domestic manufacturers and discourage future investment in the sector.
Rather than lowering import duties, stakeholders have called on the government to focus on improving the competitiveness of local industry through lower energy costs, better access to financing, and policies that create a more supportive business environment. They said such measures would allow manufacturers to expand production, create jobs, increase exports, and contribute more meaningfully to economic growth.
The industry maintained that preserving the current tariff structure is essential to protect domestic manufacturing capacity and prevent further deindustrialization. Manufacturers expressed hope that budget planners would recognize the strategic importance of the ceramic tile sector and prioritize policies that strengthen local production instead of exposing it to greater competition from low-cost imports.