In order to facilitate the local textile industries get their requirement of raw material from abroad in the face of shortage of the commodity in the country, the Karachi Cotton Association (KCA) has urged the Pakistani government to waive all duties and taxes on import of cotton immediately.
Following the devastating crop failure in 2015-16 season when cotton output fell to 9.786 million bales, the Pakistani textile industry has been forced to import raw cotton from overseas to meet its requirement of basic raw material, the KCA said in a statement.
Though the industry wants to ensure contribution towards achieving the target of exports fixed by the government, but the increased taxes on imported cotton are not only translating to rise in cost of doing business of the textile sector, but also making such products costlier in the international market,” the KCA statement added.
The textile industry pays three per cent custom duty and one per cent additional duty on import of cotton. The KCA urged the government to ensure free trading policy in cotton i.e. free export and free import of cotton without any quantitative and qualitative restrictions. The government needs to take concrete measures to increase cotton production in the years to come, the statement said.
This would ensure that there would be ample surplus cotton available for the domestic consumptions as well as exports to keep the presence of Pakistan cotton in the international market and earn much needed foreign exchange for the country. The provision of export surplus will ensure international price of cotton to the Pakistani growers.