All Pakistan Textile Mills Association (APTMA) Sindh-Balochistan Zone has appealed to the government for the removal of 4 percent import duty on raw cotton as 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.
APTMA-SB Zone also mentioned that a removal of import duty was also demanded two months ago against which demand the relevant Ministry had said that it was too early to remove this duty and the government wanted to wait till the major portion of the local crop was sold and of the hands of the farmers.
The situation as it stands today is that 80 to 82 percent of the crop has been absorbed by the textile industry; therefore, the objective as stated by the Ministry has been achieved. APTMA Sind Baluchistan also said that It is misleading to state that the Ginners and TCP have sufficient stock of cotton lint to fulfil the needs of the industry.
Since it is clear that the local crop is short of the requirements of the industry, it is necessary that timely action may 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 percent 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 the spokesman said, 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.
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