ISLAMABAD (Sarzamen News) – Senior Vice Chairman of All Pakistan Textile Mills Association, Zahid Mazhar has said that, “News appeared in section of print media quoting the press conference by the Federal Minister for Food, Security & Research, Sikandar Hayat Bosan that the government has turned down the recommendation of APTMA to waive 4% custom duty on import of raw cotton.
In a statement issued to the press, he said that, “This line of thinking is against the interests of the country in the wake of the reduction of cotton crop of two successive years by 4 million bales each.”
“The removal of import duty and sales tax was imperative so that raw material is available to the industry at competitive prices enabling it to play its role in contributing to the employment, exports and GDP of the country,” he said.
He further said that, “The reduction of local cotton crop by about 35 percent in each of two successive seasons has placed extra burden on the ailing textile industry to import about 4 million bales of cotton each year to meet the consumption requirement of the spinning industry.”
Zahid Mazhar reminded the Government that the Federal Minister for Finance, Mr. Ishaq Dar in his Budget Speech for 2016-17 has accepted that due to the failure of cotton crop by about 35 percent in the previous fiscal year, the GDP has declined by about 0.5%.
He repeated the demand for urgent measures to be taken by the Government to arrest the decline in the size of the domestic cotton crop including better crop management, improving the performance of cotton research institutes adopting appropriate seed technologies and urged that the 4% import duty on raw cotton be immediately removed.