Thursday Apr 15, 2021
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has removed the customs duty on the import of cotton yarn.
The decision was taken during a meeting presided over by the Federal Minister for Finance, Revenue, Industries and Production Hammad Azhar, The News reported Thursday.
The withdrawal of customs duty has been approved to ensure smooth supply of cotton and cotton yarn and bridge the gap between domestic production and overall demand for inputs.
The customs duty will remain zero till June, and is subject to “the approval of the cabinet,” Adviser to Prime Minister for Commerce and Investment Razak Dawood said in a tweet.
In December last year, the government already waived 5% regulatory duty.
Wary of downbeat cotton outlook amid significant decline in the crop output, textile businesses again started to see a glimpse of hope to build international competitiveness considering an exchange rate- driven erosion of margins.
“Only the half is done,” said Jawed Bilwani, chairperson of Pakistan Apparel Forum that also demands imposition of duties on cotton yarn exports.
“We want the same level of duties on yarn exports as on yarn imports,” he added.
Although yarn prices are seen declining, textile exporters still term it exorbitantly high. Pakistan is grappling with a challenge to reverse falling cotton production that was estimated to fall 40%.