The tiles industry has warned that proposed tariff changes in the upcoming budget could push manufacturers to abandon local production in favor of imports, potentially resulting in an annual foreign exchange outflow of $400 million.
The Ministry of Industries and Production recently convened the second meeting of a committee dedicated to developing the tiles sector, chaired by Special Assistant to the Prime Minister Haroon Akhtar Khan.Â
According to an official statement, Khan reviewed progress reports from the tiles industry and the Engineering Development Board, stressing the sector’s vital role in the national economy and warning against allowing its decline.
Industry representatives have called on the government to maintain the existing tax framework for 2025-26 to safeguard domestic manufacturing and prevent economic setbacks.
Before 2018, a 55 percent regulatory duty on tiles helped limit imports to $215 million annually.Â
However, the industry now faces significant cost disadvantages compared to major regional competitors, with production costs rising 72 percent mainly due to increasing gas and power prices.
