Commerce minister emphasies need to protect local paperboard industry

ISLAMABAD  -  Federal Minister for Commerce Jam Kamal Khan assured Century Paper Mills and Bulleh Shah Packaging Ltd of the government’s support in combating challenges posed by dumping and excessive imports, particularly from China. The meeting, held at the Ministry of Commerce, was attended by Special Secretary Shakeel Ahmed, Executive Director General Muhammad Ashraf, and other key officials.

Minister Khan emphasized the need to protect the local paperboard industry, noting that increased dumping from China and Indonesia is harming domestic manufacturers. “Countries that overproduce use FTAs and trade policies to protect their industries. We must secure our own by imposing effective measures like anti-dumping duties,” he said.

He urged the industry to explore alternative raw materials such as bagasse, wheat straw, and biofuel to reduce reliance on imported wood pulp. “The government will work on short-term relief, but long-term competitiveness also requires innovation and self-reliance,” he added. The local paperboard industry, with a $450 million investment, is facing severe pressure from dumped imports. Anti-dumping duties imposed earlier (30%) are being circumvented, and relief measures are stuck due to court stays. Industry representatives requested the extension of temporary regulatory duties and additional safeguards to counter unfair trade practices.

The minister directed officials to liaise with the National Tariff Commission (NTC) and address the legal hurdles delaying anti-dumping measures. He also emphasized resolving court stays promptly, stating, “Without timely action, the industry cannot survive. We’ll assist you, but you must also pursue legal solutions actively.” The meeting concluded with assurances of continued government support, with the Tariff Policy Board exploring interim relief measures to sustain the industry.

Meanwhile, Federal Minister for Commerce Jam Kamal Khan assured the Pakistan Chemical Manufacturers Association (PCMA) of the government’s full support in addressing critical challenges related to captive power, energy costs, and Export Facilitation Scheme (EFS).

Minister Jam highlighted the government’s proactive engagement on these issues, stating that he had already taken up the matter at the level of the Prime Minister and held inter-ministerial discussions with the Finance, Power, and Petroleum Ministries. “This is not just an energy issue; it may otherwise impact exports, industry, and the broader economy,” he emphasized.

The minister revealed ongoing talks with international partners to secure relief while ensuring compliance with the commitments.

Jam confirmed the finance minister’s willingness to support the industry and promised high-level advocacy if necessary. “If required, the direct engagement at highest level will be made with the international financer to ensure sustainability for the industry,” he stated.

The minister endorsed PCMA’s concerns about the high cost of switching from captive power to the national grid. “Industries cannot absorb the jump from 7.7 cents to around 16 cents per kWh without severe economic consequences,” he noted, warning that closures would result in unemployment, reduced exports, and a negative investment climate.

Minister Jam urged the industry to remain engaged with the government, assuring them of continued support. “We are with you and are pursuing these matters at all levels to ensure the sustainability of the sector,” he concluded.

The meeting underscored the importance of collaboration between the government and industry to sustain growth and competitiveness in challenging economic conditions.

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