KARACHI: Textile millers have lauded the government’s decision of imposing regulatory duty on cotton yarn imports to protect the local industry.
All Pakistan Textile Mills Association (Aptma) Chairman Tariq Saud, in a statement, said the imposition of regulatory duty is the only protection available to the local industry, protecting the rights of value-added exporters who could utilise the facility of duty and tax remission on export. “This policy has proved successful and garment exports have registered a five percent increase,” Saud said.
India has also imposed 26 percent import duty on Pakistan’s cotton yarn and unless the Pakistani businessmen get reciprocal market access there is no other way except imposition of regulatory duty on imported yarn. “High cost of doing business and tariff subsidy to yarn export provided to yarn exporters of India has also crippled Pakistan textile industry specially spinning and weaving industry,” said Aptma chief.
He urged the government to address the issue of high cost of doing business and immediately remove four percent custom duty and five percent sales tax on the import of cotton, which will enable spinning industry function properly. “Free trade in cotton will serve the interests of all segments of the textile chain and also protect the interests of the growers,” he said.
