The Pakistan government is contemplating over removing duty exemption on the import of cotton yarn of which the Ministry of Textiles has asked the stakeholder to give in their feedback. As, the All Pakistan Textile Mills Association (Aptma) has recommended to the Ministry of Textiles imposition of import duty on cotton yarn, the sources said.

Textile mill-owners urging against pulling out duty exemption on the import of cotton yarn, as their respective body has approached the Ministry of Textiles for the withdrawal of duty exemption, industry sources said on Saturday.

The value-added textile exports sector has strongly reacted against the recommendations of Aptma, adding that if the duty exemption on cotton yarn is withdrawn, the value-added textile sector will once again face hardships in the form of acute shortage of cotton yarn and prices will also go up.

Pakistan Hosiery Manufacturers Association (PHMA), central chairman Shahzad Azam Khan said that it was indeed surprising that Aptma is backtracking and advocating against the free market mechanism. Aptma had recommended import duty on cotton yarn and always stood for free market mechanism and in 2010, when the country’s value-added textile exporters needed cotton yarn, it was promoting and encouraging free market mechanism and exported cotton yarn at lower prices as compared to the international market. But form the current situation, it is very clear that it had always advocated for its own benefit and it is not least concerned about the country’s exports and betterment.

For growth of Pakistan economy, the government must not impose duty on the import of raw materials instead the duties should be imposed on the import of finished goods, according to Javed Bilwani of Pakistan Apparel Forum. Government must impose duties on the import of raw materials, as this will adversely impact the value addition industry in