Pakistani ceramic tile and glass manufacturers warn that proposed import duty cuts in the 2026-27 federal budget could push the local industry toward closure.
These tariff reductions threaten the viability of a sector already struggling with high operational costs and weak demand. Industry leaders said that lowering the cost of imports will make domestic products less competitive against foreign alternatives.
The proposed cuts to import duties on ceramic tiles and glass products range from 20% to 50% [1]. Manufacturers said these changes will create an uneven playing field by allowing cheaper imports to flood the market, while local producers face high costs of production.
Local manufacturers are already operating under significant strain. The tile sector is currently utilizing only about 50% of its installed capacity [2]. This under-utilization suggests that the industry is already failing to meet its potential output due to economic headwinds.
Industry representatives said the budget cycle announced this month fails to account for the fragility of the domestic supply chain. They said that further reducing protectionist tariffs will exacerbate the current crisis and lead to widespread factory shutdowns across the country.
The sector's struggle is compounded by a volatile economic environment. With capacity already running at half of its potential [2], producers said they lack the financial cushion to absorb a sudden surge of lower-priced imported goods resulting from the 20% to 50% duty cuts [1].
“Proposed import duty cuts range from 20% to 50%.”
The conflict highlights a tension between government efforts to lower consumer prices through cheaper imports and the need to protect domestic industrial bases. If the 2026-27 budget proceeds with these cuts, Pakistan risks a significant contraction in its manufacturing sector, potentially increasing long-term reliance on foreign imports for construction materials.
