Pakistani apparel units seek tax-free yarn import

22 Dec '17

2 min read

The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has urged the government to relax duties on yarn import to encourage value addition, reduce cost of doing business and bridge the gap between production and consumption. The request comes as the government is preparing to withdraw sales tax and customs duty on import of cotton.

The government’s decision on duty exemption for imported cotton followed demands by the spinning industry, but it displeased growers and ginners.

To bridge the soaring gap of trade deficit, the government should provide a level-playing field to the whole textile chain instead of supporting only yarn manufacturers, which have just around 350 units, compared to the value-added sector of 10,000 units, Pakistani media reported quoted PRGMEA chief coordinator Ijaz Khokhar as saying.

If the government could help the spinning industry on the plea that domestic cotton is of short staple though around 1.86 million bales of cotton are lying unsold in the country, it should remove restrictions on yarn import as well under the same plea, said Khokhar.

As the apparel sector has a limited production line because of lack of latest fabric varieties at the local level, the harsh duties are resulting in significant decline in apparel export, he added. (DS)

Fibre2Fashion News Desk – India

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