Tile makers warn duty cuts could push local industry towards closure

ISLAMABAD: Pakistan’s ceramic tile and glass manufacturers have cautioned that lower import duties proposed under the second phase of the tariff rationalisation policy in the 2026-27 budget could deepen pressure on domestic producers and potentially force some plants to shut down.

In a statement issued on Saturday, All Pakistan Ceramic Tiles Manufacturers Association Secretary General Atif Iqbal said the move would weaken the position of local manufacturers already facing higher operating costs. He said regulatory duty on imported tiles had been cut by 20 per cent, while additional customs duty had been reduced by 50pc under the new phase of the tariff plan.

According to Atif Iqbal, the reduction in duties on finished imported goods would hurt local industry and could lead to closures. He questioned how the government planned to deal with the fallout of the large-scale cuts on products that are already being made in Pakistan.

“How will the government address the serious implications of the second phase of the massive reduction in import duties on items already being manufactured by domestic industries?” he asked.

According to industry sources, the country’s ceramic tile sector is operating at nearly 50pc of installed capacity. The sector has been weighed down by a prolonged economic slowdown, weak construction activity, very high energy costs and expensive financing.