ISLAMABAD: The domestic ceramic tiles industry has urged the budget makers to maintain the existing tariff structure on imported finished tiles, cautioning that any reduction in regulatory duties (RDs) would severely impact local manufacturers already struggling under difficult economic conditions.
Talking to Business Recorder, the industry representatives stated that the sector is currently operating at nearly 50 percent of its installed production capacity due to the prolonged economic slowdown, weak construction activity, and exceptionally high energy costs. They noted that local manufacturers are facing intense competition from low-cost dumped imports, particularly from countries enjoying significantly lower production and energy costs.
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According to industry stakeholders, Pakistani tile manufacturers are not seeking additional protection but are requesting the government to remove the cost disadvantages that make local production less competitive compared to regional producers in China and India. They emphasized that high electricity, gas, financing, and compliance costs have substantially increased the cost of manufacturing in Pakistan.
The industry warned that any reduction in the existing tariff structure on imported finished tiles would encourage a greater influx of low-priced dumped products into the local market, further depressing domestic production and threatening industrial sustainability. Representatives argued that local manufacturers cannot effectively compete against imports that benefit from lower production costs, economies of scale, and, in some cases, dumping practices. They maintained that the appropriate policy response should be to enhance the competitiveness of domestic industry through lower energy costs, improved access to finance, and a more conducive business environment. Such measures, they said, would enable local manufacturers to operate at full capacity, increase exports, generate employment, and contribute more effectively to national economic growth.
Industry leaders stressed that preserving the existing tariff structure is essential for safeguarding domestic manufacturing capacity and preventing further deindustrialization. They expressed confidence that the government would recognize the strategic importance of the ceramic tiles sector and adopt policies aimed at strengthening local industry rather than exposing it to unfair competition from low-cost dumped imports.
Copyright Business Recorder, 2026
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