Pakistan will re-impose a four per cent customs duty and five per cent sales tax on cotton imports. The decision will boost the confidence of domestic cotton growers during the upcoming sowing season. A decline in cotton production last season had forced a withdrawal of import duty and sales tax.
Pakistan's cotton consumption is pegged at around 15 million bales while it produces around 10.5 million bales. The country is the third largest raw cotton exporter but has been an importer for the last two years. Last year Pakistan imported around 2.7 million bales from India.
Meanwhile, the quantity of urea approved for exports has been increased from the existing 3,00,000 tons to 6,00,000 tons. Sufficient production and inventory of urea is anticipated during the kharif 2017 thus allowing for exports. Subsidies will be given on 19 commodities to provide relief during the upcoming holy month.