Consumption of tinplate has fallen sharply: Industry officials

Smuggling and mis-declaration in imports hurting the sector.

KARACHI: The consumption of tinplate has decreased phenomenally from 250,000 tons to just 70,000-80,000 tons in the last 15 years showing rampant smuggling and mis-declaration in imports of tinplate in Pakistan, industry officials said.

The decline in tinplate consumption is difficult to understand because over the last decade the economy of country has shown remarkable growth, Siddiqsons Tinplate Limited (STPL) CEO Syed Waliullah Shah said.

“When it is clear that there an increase in demand of this commodity in the country, how is it possible that its official figures have shown a decline,” Shah pointed out, while talking to a group of media persons on Wednesday. “The drop in consumption shows that the growing demand is being met through smuggling and mis-declared imported products,” he added.

STPL is the first and only tinplate manufacturer in the country. STPL, a local project with Japanese and French partners, located 120 km from Karachi at Winder, Balochistan, is facing serious challenges.

Shah further said that the steel industry on the whole had urged the government to stop steel smuggling in the country which is not only hurting manufacturers but is also affecting genuine steel importers.

He recalled that the Board of Investment had promised to provide various facilities in the Special Industrial Zone at Winder including gas, water, hospital, roads and schools but none of these have been given to investors so far.

Since 1999, he said, the company had spent millions of rupees on diesel generated power, water treatment plant, medical dispensary besides ensuring high cost of security arrangements.

Smuggling of tinplates from Iran and Afghanistan under the garb of tin and iron scrap has been another factor undermining the industry, he added.

Former president of Karachi Chamber of Commerce and Industry, Saeed Shafiq, while talking to media persons, said that steel industry is facing serious challenges especially at policymaking levels where the government is not doing what is desired to control smuggling.

He said that the menace of mis-declaration is not only causing losses of billion of rupees annually to national exchequer but also hurting the taxpaying importers as well as local manufacturers.

Manufacturers of tinplate especially are finding it hard to survive as the mis-declared imports are being sold at least 30% lesser rates than the locally produced products. He said the crackdown on container smugglers is not only in favour of all businesses but it will also help save billions in taxes of government.

He further demanded that the government should curb the smuggling of iron scrap and tinplate from neighboring countries to protect the local player as it is government’s responsibility and necessary for the local industry’s protection.

Published in The Express Tribune, October 20^th, 2011.