The business community has appreciated Prime Minister Imran Khan for removing 5% regulatory duty on the import of cotton yarn.
In a statement on Monday, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Anjum Nisar expressed hope that withdrawal of the regulatory duty would lend great support to the textile sector and contribute to economic stability in the country.
According to the FPCCI chief, the domestic production of cotton is insufficient to meet demand of the textile industry while Pakistan continues to receive massive export orders.
“Cotton was not available at competitive prices due to regulatory duty coupled with tedious procedures,” he said. “In addition, the Covid-19 outbreak and subsequent lockdown in the recent past worsened the situation.”
He voiced fear that the second wave of Covid-19 also posed a serious threat to the textile productivity.
The cotton crop faced severe damage due to torrential rains, he lamented. “It is estimated that cotton production amounted to six to eight million bales against textile sector’s requirement of 15-16 million bales.”
Due to multiple factors, the area under cotton cultivation and production had declined significantly, he pointed out.
Citing reasons for the contraction, he said torrential rains hit cotton fields, Covid-19 battered the economy and growers shifted away from cotton production to sugarcane and maize cultivation, therefore, the cotton output dropped considerably.
Other factors were reduction in per-acre yield, low priority given to planting cotton and uncertified seeds and pesticides.
“Pakistan faces a gap of five million bales in production and consumption of cotton,” he said. “Therefore, the textile industry is compelled to import raw cotton to meet its requirement of basic raw material and ensure its contribution to exports.”
The FPCCI chief added that because of cotton import, the cost of textile production had surged, hence, the industry became uncompetitive compared to producers of other countries.
On behalf of the entire textile industry, Nisar appreciated PM Imran for the decision of eliminating 5% regulatory duty on the import of cotton yarn.
Published in The Express Tribune, December 8th, 2020.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
from Business News and Updates from the World of Commerce- eTribune https://ift.tt/2JDmgRk
No comments:
Post a Comment