Pakistan’s detergent, soap and household cleaning products industry is facing an acute shortage of Linear Alkyl Benzene Sulphonic Acid (LABSA), according to Pakistan Soap Manufacturers Association (PSMA) Vice Chairman Tariq Zakaria, who has called for immediate policy measures to improve the availability of the key industrial raw material.
Zakaria said LABSA, classified under HS Code 3402.3100, is widely used in manufacturing detergents, dishwashing liquids, soaps and other cleaning products. According to him, limited availability has disrupted production and pushed up manufacturing expenses, creating particular difficulties for small and medium-sized enterprises (SMEs).
He said the current import structure includes a 10% customs duty, 18% sales tax, 5.5% income tax and 4% regulatory duty on the raw material. He also pointed out that commercial importers face additional taxation, including 3% sales tax and 6% income tax, and urged the government to facilitate commercial imports so that local manufacturers can obtain the material.
The PSMA vice chairman further claimed that domestic LABSA producers are currently unable to supply sufficient quantities to meet the industry’s requirements because of shortages of their own necessary inputs. As a result, he said, some manufacturers are operating below capacity while others are facing difficulties maintaining regular production.
Industry representatives have called on the Government of Pakistan to take urgent steps to address the supply problem. Among their proposals is the removal of anti-dumping and regulatory duties on LABSA imports, which they argue could lower input costs, improve supply availability and support continued production of household cleaning products.
The industry has also proposed allowing commercial importers to bring LABSA into Pakistan and supply it directly to domestic manufacturers of detergents, dishwashing products and other cleaning goods. According to Zakaria, greater access to imported LABSA could help bridge the current supply gap and reduce the risk of interruptions in industrial activity.
Zakaria also raised concerns about the distribution of government incentives, arguing that existing policies tend to provide greater advantages to multinational companies while local SMEs receive comparatively limited support. He said stronger assistance for smaller manufacturers could contribute to employment, industrial expansion and a more stable supply of essential cleaning products in Pakistan.
