The Economic Co-ordination Committee (ECC) of the Pakistan’s Cabinet has decided to withdraw duty exemption on cotton yarn import, according to a press release from the Ministry of Finance.
The ECC of the Cabinet, which met under the Chairmanship of the Federal Minister for Finance Mohammad Ishaq Dar, decided to withdraw SRO 15(I)/2010, which exempted cotton yarn import from custom duty of 5 percent, in order to check import of cotton yarn, the release said.
In recent months there has been a rapid increase in import of cotton yarn and Pakistan’s domestic cotton yarn industry has started feeling the heat of extraordinary liberal tariff regime.
Meanwhile, SM Muneer, Chairman of the Trade Development Authority of Pakistan (TDAP), has said that the appreciation of Pakistani rupee against the US dollar has adversely affected export-oriented sectors, including textiles, and has urged the Finance Ministry should work for resolving this issue.
During the eight-month period from July 2013 to February 2014, Pakistan’s textile and apparel exports increased by 8.28 percent year-on-year to US$ 9.155 billion, while its imports also grew by 2.92 percent year-on-year to$1.737 billion, according to the data from the Pakistan Bureau of Statistics.