Sheikh Luqman Ain, Regional Chairman, The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has emphasized on the need to continue duty-free import of cotton and cotton yarn from all over the world till the country becomes self-sufficient in the raw material.

Amin says, Pakistan has been unable to achieve its full exports potential due to lack of product diversification and limited access to raw-material. All taxes and duties on cotton yarn import should be terminated on long-term basis to achieve price competitiveness and product diversification, he adds.

The Economic Coordination Committee (ECC) of the Cabinet had announced to withdraw customs duty on import of cotton yarn in April this year for the period of three months in order to ensure smooth supply of it to the value-added apparel industry, Amin informs. The government’s earlier move of withdrawing five percent regulatory duty in Dec 2020 on the import of cotton yarn, and then removal of customs duty in April 2021 greatly supported the apparel sector and contributed to the country’s economic stability, which needs continuation, he adds.

Amin has also urged the government extend the relaxation of customs duty on yarn import till the country is capable of meeting textile value-added industry’s demand of 10 million cotton bales. He further requested the Prime Minister to direct the ministries concerned to focus on the value-added apparel sector and prepare a solid strategy to help the industry stay afloat.