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08 09

News

APTMA

demands duty free

cotton imports

FBR has imposed custom duty on imports of cotton reduced because of which cotton yield in Punjab
and yarn to encourage use of local crop and save has decline as well. Due to poor water manage-
foreign exchange reserves. But APTMA is severely ment, Sindh failed to cultivate 48% of cotton area.
against the re-imposition of custom duty in cotton
import. Mr Zahid Mazhar, Senior Vice Chairman Due to sales tax and custom duty imposition on raw
APTMA said that 3% and additional 2% custom duty cotton, import of finished cotton yarn have increased
on cotton import with effect from 15th July, 2018 is 500% in 2016-17 as compared to 2011-12.
the final nail in the coffin of ailing the textile industry.
Mr Zahid Mazhar, Senior Vice Chairman APTMA
Mr Aamir Fayyaz, Chairman APTMA, has demand- said, “This policy instead of supporting manufactur-
ed an immediate withdrawal of SRO No. ing of cotton yarns in Pakistan is rather helping the
848/(I)/2018. He said that although the SRO will yarn manufacturing industry of other countries
marginalize the positive impact on exports at competing with us”.
present but it will cripple down the industry’s revival
efforts ahead in the arrival of next crop. A direct Due to sustained demand of cotton in front of short
support frame should be setup by the caretaker supply, the prices have remained on the higher side
government instead of burdening the entire value and according to the market analysts, they believe
chain of the industry. Such a naive effort of carrying that in coming days prices would further rise as the
out a revenue drive will have an adverse impact on demand and supply issue continues.
the whole textile value chain.
High cost of doing business has led to closure of
As per the Pakistan Cotton Ginners Association 140 textile mills and approx. 80 mills are on the
cotton arrival statistics on 1st May, 2018 11.58 verge of closing which will add another 0.5 million
million bales of 155 kg were produced in 2017-18, unemployment figure and the loss estimated due to
10.73 million bales in 2016-17 and 9.79 million this closure of $4 billion per annum.
bales in 2015-16 which highlights that three
seasons in a row Pakistan cotton crop has been Following the example of India, APTMA has
below the set target. demanded the government to make efforts to
increase the annual size of cotton crop to 20 million
Since a significant number of cotton growers have bales which will boost farmers’ income, reduce
shifted to sugarcane the cotton cultivation area has input costs and facilitate high export growth.

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