Raw cotton exports from Pakistan in the eight months of current financial year grew by 38 per cent as compared to the corresponding period of last year. Now, the industry wants duties and taxes imposed on polyester yarn to be abolished, enabling the knitwear and sportswear industry to compete with the international market and earn foreign exchange.

For Pakistan, the benefits of renewed GSP Plus status can only be harvested by maximum value addition in finished products rather than exporting only raw materials. Knitwear export industry adds manifold value to basic commodities like raw cotton and yarn.

The GSP window had opened tremendous opportunities by way of inflow of abundant export orders which can only be executed if the liquidity problem of the industry is resolved at the earliest. Liquidity problems prevent exporters from keeping up their export commitment.

Pakistan’s sportswear industry is based on polyester-made garments and now there is a five per cent regulatory duty on imports of polyester yarn and an average seven per cent anti-dumping duty.

The total duty and taxes including anti-dumping on polyester yarn regulatory duty, anti-dumping and other taxes account for 30 per cent. Major manufacturers of polyester yarn in Pakistan do only draw textures yarn.