KARACHI: The All Pakistan Textile Mills Association (Aptma) Sindh-Balochistan Zone on Monday reiterated its appeal to the government to remove 4% import duty on raw cotton.
The local crop is estimated to be not more than 11.25 million bales this year whereas the requirement of Pakistan’s industry is not less than 14.5 million bales at the moment, according to a press release.
Aptma-SB Zone also mentioned that the removal of import duty was also demanded two months ago against when the relevant ministry said that it was too early to remove and the government wanted to wait until a major portion of the local crop was sold.
The situation as it stands today is that 80 to 82% of the crop has been absorbed by the textile industry; therefore, the objective as has been achieved. It is misleading to state that the ginners and TCP have sufficient stock of cotton lint to fulfil the needs of the industry, the release added.
Since it is clear that the local crop is short of the requirements of the industry, it is necessary that timely action be taken so that the exports of the country do not suffer any further.
It is not possible for the Pakistan textile industry to bear the additional burden of 4% import duty and compete in the export market against countries, which have a lower cost of raw cotton due to local availability without import incidentals.
Since textile sector exports are already declining, it is in the interest of the country and the industry as a whole to take stock of the position in a realistic manner, so that production capacity may not close down any further.
Courtesy : Express Tribune