Trade body welcomes decision to remove regulatory duty on cotton yarn.

Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has appreciated PM Imran Khan for removing 5% regulatory duty on import of cotton yarn on FPCCI's recommendation. 'The decision of the withdrawal of 5% regulatory duty on the import of cotton yarn will greatly support the textile sector of Pakistan and will contribute to the economic stability of the country,' said Mian Anjum Nisar, President FPCCI. He said FPCCI has pointed out that country has not been able to achieve its full export potential in the textile sector and product diversification. It is due to limited access to raw-material.

The regulatory duty on cotton yarn should be terminated so that exporters could be able to achieve price competitiveness and product diversification. According to FPCCI chief, local production of cotton is not sufficient to meet the demand of the textile industry while Pakistan is receiving huge orders. Cotton was not available at competitive prices due to the regulatory duty and hectic procedures, and the COVID-19 outbreak and the lockdown in recent past have also worsened the situation. The second wave of COVID-19 is also a serious threat to textile productivity. The cotton crop was severely damaged due to torrential rainfalls last year. It is...