The Economic Coordination Committee of Pakistan’s cabinet has withdrawn customs duty on the import of cotton yarn. The customs duty will remain zero till June and is subject to the approval of the cabinet. The decision was taken on April 14 during a meeting presided over by federal minister for finance, revenue, industries and production Hammad Azhar.
The withdrawal of customs duty is meant to ensure smooth supply of cotton and cotton yarn and bridge the gap between domestic production and overall demand for inputs.
Although yarn prices have been declining, textile exporters in Pakistan believe it is still quite high. The Pakistan Apparel Forum has been demanding imposition of duties on cotton yarn exports to be at the same level as yarn imports. Cotton production in Pakistan has been falling in recent times.
Source: fibre2fashion