PM urged to abolish taxes, duties on cotton yarn import

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Karachi: Faisal Moiz Khan, President North Karachi Association of Trade & Industry (NKATI), while Expressing deep concern over the unavailability of cotton and cotton yarn and appealed the Prime Minister Imran Khan to abolish all taxes and duties on cotton yarn import, which is the basic raw material of the textile industry, hence if taxes, customs and regulatory duty is not abolished then execution of export orders will be jeopardized. This will result in significant financial losses to exporters in the event of cancellation of export orders.

In an appeal to Prime Minister Imran Khan, Abdul Razak Dawood, Advisor to Prime Minister on Commerce and Investment, Asad Umar, Federal Planning, Development and Hammad Azhar, Federal Minister of Industries and Production, Faisal Moiz Khan said that as the effects of the COVID-9 have gradually receded around the world, Pakistan has begun to receive a large number of export orders for apparel and home textile products but due to high prices, industrial production activities are being hampered which is making it difficult for exporters to fulfill foreign orders on time.

“As the effects of the Corona epidemic have gradually receded around the world, Pakistan has begun to receive a large number of export orders for apparel and home textile products but due to high prices, industrial production activities are being hampered which is making it difficult for exporters to fulfill foreign orders on time”, he feared.

NKATI president emphasized that the government should take immediate notice and take steps to provide relief to the industries so that they can meet the production demand by importing cotton and cotton yarn from Turkey, Vietnam, Oman and Tajikistan at reasonable prices.

“The Spinning sector is allowed duty free import of cotton while apparel and home textile sectors are not allowed duty free import of cotton yarn which is a discrimination”, he pointed out. Therefore, if our demand is not taken seriously immediately, Pakistan will not be able to take advantage of this golden opportunity of export orders from global markets and we fear a decline in exports of textile products.

Faisal Moiz Khan appealed to Prime Minister Imran Khan to immediately abolish taxes, customs and regulatory duty on the import of cotton and cotton yarn in the best economic interest of the country. So that basic raw material may be available to the textile industry at reasonable prices as per the production demand and they can enable timely to delivery of foreign orders, which will definitely increase exports as well as have a positive impact on the domestic economy.