PRGMEA Welcomes Withdrawal Of Customs Duty On Cotton Import

The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has welcomed the withdrawal of customs duty on import of cotton yarn by the Economic Coordination Committee (ECC) of the Cabinet in order to ensure its smooth supply to the value-added industry

ISLAMABAD, (UrduPoint / Pakistan Point News - 15th Apr, 2021 ) :The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has welcomed the withdrawal of customs duty on import of cotton yarn by the Economic Coordination Committee (ECC) of the Cabinet in order to ensure its smooth supply to the value-added industry.

According to a press release issued here, PRGMEA Central chairman Sohail Sheikh and Chief Coordinator Ijaz Khokhar appreciates the efforts of Adviser to the PM for Commerce and Investment Abdul Razak Dawood for presenting their demand before the ECC.

Sohail Sheikh said the government's earlier decision of withdrawing five per cent regulatory duty in Dec 2020 on the import of cotton yarn and now removal of customs duty will greatly support the textile sector and contribute to the country's economic stability.

"This is not an ideal situation, especially at a time when the exporters are facing financial crunch in the wake of 700 percent jump in sea freight charges and sharp depreciation of Dollar against rupee, yet it would provide some cushion to the apparel sector, which is suffering a huge shortage of industry raw material," observed Ijaz Khokhar.

He asked the government that this relaxation of customs duty on yarn import should not be limited to just three months rather it should continue until the country is capable of meeting textile value-added industry's demand of 10 million cotton bales. If this relief is withdrawn after June 2021 amidst shortage of cotton the export growth will be affected severely, which should be avoided at any cost, he said.

Sohail Sheikh said the country has been unable to achieve its full exports potential due to lack of product diversification and limited access to raw-material. To this effect, he added, the all taxes and duties on cotton yarn import should be terminated on long-term basis so that exporters could be able to achieve price competitiveness and product diversification.