Textile & Fashion

Pakistan Apparel sector demands tax-free yarn import

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LAHORE - As the government of Pakistan is ready to withdraw the sales tax and customs duty on import of cotton due to rising demand of spinning industry, but the interest of the growers and ginners were not addressed. So the Pakistan Readymade Garments Manufacturers & Exporters Association has appealed to the authorities to also relax duties on yarn import to encourage value addition, reduce cost of doing business and bridge the gap between production and consumption.

PRGMEA Chief Coordinator, Ijaz Khokhar asked the Textile Division to submit the summary to the ECC for the purpose of duty relaxation on yarn import in-line with the perks being offered to the spinners.

“With the perception to leverage the soaring gap of trade deficit, the government will have to provide level-playing field to the entire textile chain instead of just supporting only yarn manufacturers in the country, which have just around 350 units, against value added sector of 10,000 units across the country. With respect to employment generation, one spinning unit generates just 5% employment while garment unit creates 95% employment,” he added.

Ijaz Khokhar said that despite the fact that around 1.86 million bales of cotton are lying unsold in the country, still the government is going to facilitate the spinning industry on the request raised that domestic cotton is of short staple, it will have to eliminate restrictions on yarn import too.

He laid emphasis on the matter that, since the apparel sector already has a very limited production line due to lack of latest fabric varieties at local level the harsh duties imposed is leading to significant decrease in apparel export. He said that apparel industry is already suffering with the low productivity due to presence of factors like due to shortage of cotton yarn, high energy cost, and discriminating import duties on the industry's raw material.

 

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