ECC withdraws customs duty on cotton yarn import

The Economic Coordination Committee (ECC) has withdrawn customs duty on import of cotton yarns, in order to facilitate the value-added exporters, informed Advisor to Prime Minister on Trade and Investment Abdul Razak Dawood.

“Pleased to inform that on a summary moved by Ministry of Commerce, ECC has withdrawn customs duty on import of cotton yarns to facilitate the Value-Added exporters. This will be notified with the approval of the cabinet,” informed Dawood in a tweet post on Wednesday.

It is pertinent to mention that regulatory duty was already withdrawn in December 2020 on the recommendation of the commerce ministry. “Now the value-added manufacturers and exporters can import cotton yarns at 0% customs duty,” added Dawood.

The textile exporters on Monday, said that the value-added textile exporters are facing jeopardy and financial hardships as their cost of manufacturing are gone out of control due to dollar depreciation against Pak Rupees from 164 to 153 and an increase in prices of cotton yarn more than 40 percent and 700 percent increase in sea freight charges.

Further Government's decision for disconnection of gas supply to industrial captive power plants of export industries is also a hanging sword that will destroy investment of billions of rupees. Shifting of industries from gas to national grid is technically not possible as supply of electricity to industries through distribution companies especially K-Electric, which lacks infrastructure of transmission and distribution capacity.