Govt urged to avoid imposing duty on export of copper, aluminium ingots

ISLAMABAD: Exporters and melters of copper and aluminium have requested the government to refrain from imposing duty on exports of the two metals. 

Officials said that a total of $700 million from copper ingots, and $30 million from the export of aluminium ingots were earned for the national exchequer in this year.

"Our combined exports would have touched $1 billion, but we were not able to achieve that target due to three months of lockdown due to the ongoing pandemic," they added.

On the other hand, fan manufacturers have requested the government to go ahead with imposing duty on copper and aluminium exports as prices of the product have increased in the international market due to which their profit has decreased. 

Officials said that the fan industry's exports, after value addition, equal $24 million, while one exporter alone sends copper worth $50 million to China.  

However, exporters of copper and aluminium had recently held a meeting with Advisor to the Prime Minister (PM) on Commerce and Investment, Abdul Razak Dawood, warning of a possible fallout if the government imposes duty on the export of ingots.   

The commerce advisor was informed that Pakistan exports copper and aluminium by adding value to metal scrap. 

"We have been exporting copper ingots since 2008, and throughout the last 12 years, local manufacturers have never faced a shortage of copper or aluminum scrap in the country. Even today, scrap is available in abundance and local manufacturers can easily import it in case they face a shortage as the government has already given many tax-related exemptions on the import of raw materials," exporters said.

The advisor was further informed that export target for the year 2021 is $2,000 million for the two metals but can be increased tenfold with the government's support.

Presently, China is importing $40 billion copper and aluminium ingots while Pakistan's contribution is below a billion dollars. 

It is pertinent to mention here that China has zero-rated this sector under the free trade agreement signed last year due to which copper and aluminium ingots exports reached $730 million in China.  

Officials said that Chinese investors are also establishing the copper and aluminium ingots industry in Pakistan and any duty can hurt this investment.