KARACHI: The Federal B Area Association of Trade and Industry (FBATI) has welcomed the decision of the Economic Co-ordination Committee of the Cabinet to remove customs duty on cotton and yarn imports.
President FBATI Muhammad Ali said that he thanked Prime Minister Imran Khan, Commerce Adviser Razzaq Dawood and the federal cabinet for allowing duty-free import of cotton yarn by June.
Until the target of import of bales is achieved, duty free import of cotton yarn should be allowed, he said, adding that export of yarn from Pakistan should also be banned or 10 percent duty should be imposed on export of cotton from Pakistan.
Idris Gigi, a member of FBATI, called on the government to abolish additional customs duties and regulatory duties on synthetic yarns for the betterment of the textile industry, which was hampered by unavailability of raw materials and unavailability of prices.
He said that due to low production of cotton in the country and sharp rise in the price of cotton yarn in the local market, the cost of industrial production has increased significantly.
On the contrary, industries are becoming more difficult to operate, which may affect the supply of export orders.
Copyright Business Recorder, 2021