Federal Budget: PAPGAI, APPMA decry preferential treatment to specific firm
The printing and packaging industry of Pakistan—one of the country's largest economic contributors and the second-highest employment generator after textiles—strongly protests the undue and selective facilitation being extended to a single domestic paper manufacturer through recent tariff manipulations.
Specifically, the introduction of a new HS Code, 4810.9210 (Aseptic Liquid Food Packaging), with a reduced customs duty of 10%, marks a significant departure from the previously applicable 20% duty under HS Code 4810.9200 for coated packaging board (multi-ply). This move is seen as arbitrary and lacks industry-wide consultation or justification.
The reclassification and artificial tariff bifurcation, which now distinguishes HS Code 4810.9210 from 4810.9290, appears deliberately designed to benefit a single manufacturer. This not only exempts the manufacturer from alleged anti-dumping duties but also grants an unjust competitive advantage at the expense of the rest of the industry.
Such preferential treatment distorts the market, disrupts fair competition, and imposes discriminatory cost burdens on the broader packaging sector that depends heavily on coated board materials as critical raw input. The consequences are far-reaching—raising costs, discouraging investment, and threatening jobs across the entire value chain.
Further compounding this issue is the National Tariff Commission's continued push to impose anti-dumping duties on Coated Bleach Board (HS Code 4810.9290) imported from China. These actions, pursued without a fair and transparent consultative process, appear to serve narrow commercial
Interests rather than the broader goals of National Economic Development.
The proposed anti-dumping duty seems to be a policy instrument crafted to patronize a single domestic manufacturer, while placing an unjust burden on over 10,000 printing and packaging businesses across Pakistan. Such measures threaten the viability of a critical industry that plays a vital role in supporting both domestic production and export-oriented sectors.
The printing and packaging industry, which serves both domestic and export-oriented sectors, is already burdened by the extreme 20% customs duty (CD) and 4% additional customs duty (ACD) on essential raw materials. The imposition of additional duties, coupled with unreliable alternative sources, will significantly wear down competitiveness, hurt SMEs, and discourage investment.
This tariff manipulation and policy favoritism are in direct violation of Article 25 of the Constitution of Pakistan, which upholds the principle of equality before law. It also undermines the government's own stated objectives of industrial growth, fair competition, and export promotion.
We urge the Federal Board of Revenue (FBR) and the Ministry of Commerce to immediately review and rectify transparent tariff structure across the board as under:
Review and rectify the tariff reclassification to ensure uniform, fair, and transparent tariff structure across the board and aligns with WTO norms and Pakistan's trade obligations.
Restore a level playing field by applying duties uniformly across all importers and end-users of coated packaging board.
Consult with stakeholders across the industry before implementing structural changes that can impact thousands of businesses and livelihoods.
Failure to address this issue could further destabilize a vital sector that is pivotal to Pakistan's export competitiveness and domestic economic resilience.
Copyright Business Recorder, 2025
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