The cable and conductor industry in Pakistan is under severe pressure due to government policies that are allowing for exemptions on duties and sales tax on imports of wires & cables which are manufactured in Pakistan.
Furthermore, these goods are being supplied at very low rates as they are being imported as part of equipment and machinery.
All Pakistan Cables & Conductors Manufacturers Association (APCCMA) has expressed its grave concern over these government policies and has demanded the imposition of regulatory duty on imports of cable and conductors in Pakistan.
Chairman APCCMA, Mr. Kamal Chinoy stated that the local industry had been actively putting forward their case to FBR and various relevant ministries but has received little support to date. APCCMA had demanded imposition of regulatory duties on all imported cable and conductors.
These matters were presented to the Finance Standing Committee of both the National Assembly and the Senate and in both cases the committees agreed that APCCMA had a valid case and that RD should be applied to the imports of cable and conductors, said Mr. Chinoy. He lamented that despite these recommendations from the standing committees, FBR is yet to act on this.
Local cable and conductor industry employs approximately 3,000 persons is estimated to have contributed over Rs. 4.3 billion to the national exchequer in the past year. Moreover, in anticipation of growing local demand, the industry invested Rs. 2.2 billion on capital expenditure.
However, there is a huge amount of excess capacity in the country as the imports of wire and cable have grown alarmingly by approximately 60% to US$ 90 million in the past year.
Mr. Amer Azam, Vice Chairman APCCMA, further expressed deep concerns of the local cable and conductor industry that RD is being applied to imported raw materials. PVC Resin, which is a major raw material, is being protected by both anti dumping and regulatory duty and there are concerns that further regulatory duty may be applied.
This would be a catastrophic outcome for the local industry, which is being forced to compete with imports, while the raw material value continues to increase due to government duties. The APCCMA also expressed concerns of 4% duty being applied to copper cathode, the key raw material for cable manufacturing. RD on steel wire rod of 25% is another concern of the local industry, as there is no domestic manufacturer of high carbon steel wire in Pakistan and all of it is being imported.
