PCTP’s 2nd phase to hit ceramic & glass industries hard: APCTMA

ISLAMABAD: The second phase of customs tariff rationalisation plan under the new Pakistan Customs Tariff Policy 2026-27 would have a disastrous impact on the domestic manufactures from July 1, 2026 particularly ceramic tiles and glass industries facing challenges to survive in the presence of imported ceramic tiles/ glass products with further duty reductions in coming budget. Talking to a select group of journalists on Saturday, Atif Iqbal – Secretary General All Pakistan Ceramic Tiles Manufacturers Association (APCTMA) stated that as the Federal Budget 2026-27 approaches, stakeholders of Pakistan’s ceramic tiles industry have urged policymakers to protect domestic manufacturing from premature tariff reductions under the National Tariff Policy (NTP) 2025-30. READ ALSO: Pakistan ceramics maker halts multibillion-rupee expansion plan amid sector saturation Similarly, Pakistan Glass Manufacturers Association (PGMA) has raised serious concerns over the deteriorating condition of the domestic glass manufacturing sector, warning that any reduction in import duties on finished glass products could push the industry towards complete closure. In a communication addressed to the Ministry of Industries and Production, the PGMA stated that the glass sector is already operating at only 50% of its installed capacity, while the remaining production lines have been shut down due to prevailing economic challenges and adverse business conditions, glass industry added. The PGMA has therefore urged the government to maintain the existing tariff structure on imported finished glass products and adopt policies aimed at industrial revival, higher capacity utilization and investment retention. In this regard, domestic tiles industry has made representations before the Prime Minister, Finance Minister and Commerce Minister to save the ceramic tiles industry from total closure. All Pakistan Ceramic Tiles Manufacturers Association (APCTMA) has warned that the sector is already facing severe challenges and that any further reduction in customs duties on imported ceramic tiles could jeopardize the survival of local manufacturers. Stakeholders believed that maintaining the current tariff regime on imported finished ceramic tiles is necessary to prevent further erosion of domestic manufacturing capacity and to enable the industry to recover from the economic challenges it presently faces. According to the APCTMA, Pakistan’s ceramic tiles sector is currently operating at nearly 50 percent of its installed production capacity, with a significant number of production lines remaining shut down or idle due to high energy costs, elevated financing rates, excessive taxation, declining purchasing power, and the prolonged economic slowdown. Industry stakeholders maintain that domestic manufacturers are already operating under substantial cost disadvantages compared to foreign competitors who benefit from lower energy tariffs, cheaper financing, supportive industrial policies, and better infrastructure. Experts believed that reducing tariffs without first addressing these structural disadvantages would expose local manufacturers to unfair competition and may accelerate the decline of domestic industry. Industry circles have emphasized that implementation of the National Tariff Policy should be preceded by a comprehensive National Industrial Policy (NIP) 2025-30 aimed at creating a genuine level playing field for Pakistani manufacturers. Before finalization of NIP 2025-30, the government must take all stakeholders on board and finalize the policy after addressing apprehensions of the domestic tiles industry. Pakistan’s ceramic tiles industry represents billions of rupees of investment, advanced manufacturing capabilities, technology transfer, import substitution, and thousands of direct and indirect employment opportunities. The sector has developed the capacity to meet a substantial portion of domestic demand through local production, APCTMA maintained. Stakeholders feared that premature tariff liberalization could lead to factory closures, job losses, reduced government revenues, and increased dependence on imports, ultimately weakening Pakistan’s industrial base. Copyright Business Recorder, 2026

Read full story on Business Recorder