Shipbreaking industry calls for checking smuggling of Mooa-cut pipe
By Asim Hussain

ISLAMABAD—The Shipbreaking industry has demanded that smuggling of substandard half Mooa-cut pipes commonly known as pipe phara from Taftan border should be stopped for revitalization of the industry in the country as this material does not conform to the required standard for construction in terms of its elongation flexibilities and strength.
About one million ton material per year is being smuggled and supplied to re-rolling mills in Karachi and Lahore, the industry added. The ship-breakers also briefed that the sale tax charge on this material is not based on proper assessment thus incurring lose to the national exchequer.
Detailed deliberation were carried out in a meeting held here today at EDB to plan a strategy for revitalization of ship-breaking industry, which was attended by senior officers of the Board and office bearers of ship breaking association. The meeting was informed that ship-breaking industry was established in late 70s and it use to break around 200 to 250 ships annually. During 1999, the ship-breaking industry of Pakistan was the third largest in the world. From early 90’s till 1998-99 tonnage varied from 300,000 to 926,000 LDT, which reduced to 71,000 LDT in 2005-06. It was noticed that Pakistani ship breakers are specialized in breaking large tonnage vessels. Presently, 5 ship breaking yards are in operation at Gadani. Average investment to set up a ship-breaking yard ranges from Rs 35 to 50 million, the meeting was told. The meeting noted that ship breaking activity peaked in 1998-99 with 54 vessels, 926,067 LDT due to lowest international prices, US$ 118-148 / LDT. It dwindled since 2001-02 due to gradual increase in the prices of ship, US$ 118 to 382 LDT. Inspite of the relief in custom duty, sales tax and income tax the industry could not take off.